HSBC Singapore completed a transaction using blockchain based on which it shows they perceived that the technology seems commercially compatible for trade finance business.
The banking giant is joining hands with ING and agrifood group Cargill to conduct what it claims to be the first live, commercial trade finance transaction on R3’s blockchain platform, Corda.
What exactly is the fact of the matter: In a blockchain transaction that fortifies a bulk shipment of soybeans from Argentina, through Geneva’s trading arm of Cargill, to Malaysia, through Cargill’s Singapore subsidiary as the purchaser. A Letter of Credit was issued using Corda by HSBC to ING. The two banks were acting on behalf of Cargill entities, according to the sources.
HSBC reported the transaction demonstrates that blockchain as a solution to trade digitization, is commercially and operationally viable. Conventional exchanges for paper-based documentation related to letters of credit usually take between 5-10 days. This exchange was done in 24 hours.
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