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HSBC, RIL execute blockchain trade finance transaction

IANS  |  Mumbai 

Banking and major and Ltd on Sunday said that they have executed a first-of-its-kind trade transaction, validating the commercial and operational viability of as an alternative to conventional exchanges for paper-based documentation.

"This is an industry-first as the platform integrated with 'Bolero's electronic Bill of Lading' (eBL) platform to issue and manage an electronic 'Bill of Lading'," a joint statement said.

"This allowed a digital transfer of the title of goods from the seller to the buyer in the underlying trade. It further enabled the underlying trade to be fully digitised."

According to the statement, the end-to-end transaction was executed on "R3's Corda" blockchain platform which is a single-shared application, rather than requiring multiple isolated digital systems across various counterparties located around the globe.

"The 'Letter of Credit' (LC) was issued by for Tricon Energy USA (importer) with as the advising and negotiating for Reliance Industries, (exporter)," the statement said.

"This solution is a significant improvement for any organisation involved in buying and selling goods internationally, as it truly brings together all parties onto one platform."

The statement added that the transaction validated the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation.

"We are excited to with on digitalisation of trade This reflects our continued commitment to embrace emerging technologies and industry-first initiatives," Srikanth Venkatachari, Joint Chief Financial Officer, Reliance Industries, was quoted as saying in the statement.

"The use of blockchain offers significant potential to reduce the timelines involved in exchange of export documentation from the extant 7 to 10 days to less than a day. When adopted at scale, it helps in significant optimisation of working capital. Further, use of blockchain in trade enhances transparency, security and synergy across all the parties and stakeholders involved."

--IANS

rv/shs

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, November 04 2018. 15:38 IST
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