Wealthiest Man In India Sees His Company Embrace Blockchain Technology
India’s Reliance Industries Embraces Blockchain Technology
Recently, Reliance Industries used blockchain technology to facilitate an international financial transaction. The company is owned by the wealthiest individual in India, Mukesh Ambani, and mainly deals with petroleum products. It is also the biggest private business in India. On the other end of this transaction was Tricon Energy USA, a firm that concerns itself with distribution of chemicals.
As reported on CoinDesk, other partners in the transaction were HSBC India and ING Bank, both of which are banking institutions operating out of India and Belgium respectively. Moreover, the announcement states that the transaction was deployed on the Corda blockchain platform.
In this case, the importer was Tricon Energy SA, while the exporter was Reliance Industries. HSBC India acted as the financial adviser to the exporter, whereas the ING Bank provided the letter of credit. A letter of credit is a document issued by a bank to a seller as an assurance that the buyer will pay.
Regarding this development, Hitendra Dave, a senior executive at HSBC India, said that the implementation of blockchain technology marks a major leap towards the digitization of trade. He added that the efficacy associated with the technology has the will make international trade between companies faster and cheaper.
As of now, the majority of letters of trade are in hardcopy. Before a transaction is completed, letters have to be manually sent total the involved parties. This process is expensive as it is time consuming. Contrariwise, blockchain-driven transactions remove the need for paper-based letters of trade, thus saving time and money. In this regard, Skiranth Venkatachari, the CFO of Reliance Industries, said that blockchain can reduce transaction turnaround times from the present average of 7 days to just a few hours.