First-Ever Blockchain Trade Finance Transaction with HSBC India and Reliance Industries (RIL) Happens
One of the Indian Subsidiary that is part of the major global financial and banking services firm HSBC, together with one of India’s Holding the Reliance Industry (RIL) have just been able to complete a blockchain enabled trade finance transaction. This is according to a report made by The Hindu Business Line.
The blockchain powered LoC, Letter of Credit, has been considered to be the very first of its kind within India that has been involved with export by the Reliance Industries straight to Tricon Energy in the US. With this in place, it was able to significantly reduce the cost and time involved in the document processing.
This is not all, as with the new system in place it will present a significant improvement within the global export market interactions. It will be able to quickly bring all the parties involved in just one platform, as the Hindu Business noted it.
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The article continues to say that the transaction solution has already been implemented. This is through the simple integration of the blockchain technology, together with an eBL, electronic Bill of Landing, a platform that has been dubbed as Bolero.
The system was initially introduced in November 2016; it is able to allow for issuance and secure management of the eBL. But this is not all as it will enable easy digital transfers of the goods titles that they get from buyers and sellers in the trade.
Srikanth Venkatachari, who is the joint Chief of RIL, went ahead to state that the new blockchain deployment has been able to demonstrate the potential of drastically reducing the timelines that are involved with effective management in the export documentation. This is from reducing it from seven days to just completing the transactions in less than a day.
Some of the major global banks early this week went ahead to launch a blockchain platform that was able to address international or financing trade. It is the likes of HSBC, which is a UK based company, Standard Chartered and BNP Paribas.
The platform has been dubbed as the eTrade Connect, a platform that is able to reduce the time it takes for a trade loan application to get approved, this is from the long wait of 36 hours to just four.
A lot of developments have been taking place, as earlier on this year, it was reported by the international daily newspaper, the Financial Times, that HSBC will be completing the very first global trade finance transaction that has been fully powered by the blockchain. A deal that involved and LoC for a U.S based food and agriculture conglomerate Cargill.