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British bank HSBC performed the first Indian financial transaction using the blockchain for a transaction involving an export of Reliance Industries to a US customer. The blockchain-enabled letter of credit transaction involved an expedition of the company led by Mukesh Ambani to US Tricon Energy and reduced the time required to process documents.
"The use of the blockchain offers considerable potential for reducing the time involved in exchanging export documents from seven to ten days remaining to less than a day," said Srikanth Venkatachari, responsible RIL Finance, cited by PTI
The blockchain platform has been incorporated into the electronic bill of lading (eBL) to issue and manage an electronic bill of lading, he adds, adding that this allows a digital transfer of the title of the goods from the seller to the buyer in the underlying trade.
The affirmation baderts that the solution is a significant improvement for any organization involved in the purchase and sale of goods to the international, because it brings together all parties on the same platform.
Blckchain solutions is a distributed database that keeps a growing list of ordered files called b locs and is considered very transparent because all stakeholders can track progress in real time.
A multitude of national lenders, including ICICI Bank, SBI and Yes Bank, among others, work there. Blockchain solutions and consider trade finance as one of the best use cases of technology because of its ability to reduce delays.
Hitendra Dave, head of banking and global markets at HSBC, said blockchain had a transformative impact on trade finance transactions. greater transparency and security, in addition to simplifying things and making them faster.
That aside, this can ensure profitability, speed up work and potentially free up cash for businesses, he added.
For this transaction between Reliance and Tricon, the LC was issued by ING Bank, Brussels, for Tricon Energy US, with HSBC India as a consulting and trading bank for Reliance, said the action validates the viability commercial and operational blockchain as an alternative to the traditional exchange of paper documents.
Explaining the current system, he indicates that currently buyers and sellers use paper-based letters of credit to substantiate their transactions and that physical documents are sent to each party to the transaction by mail, courier or fax .
While the current system offers a high degree of certainty, the time and cost of document processing is a deterrent to exporters.
HSBC has indicated, as well as five other banks globally supporting the "Corda application" seek to expand the network on an open source basis in order to foster their uptake by the Internet. entire sector.
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