Hong and Shanghai Banking Corp (HSBC) India and ING Bank Belgium have jointly executed a trade transaction using blockchain enabling cross border payment from a US-based company to India’s Reliance Industries in a totally digital form.
“(The transaction) 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. The Letter of Credit (LC) was issued by ING Bank for Tricon Energy USA (importer) with HSBC India as the advising and negotiating bank for Reliance Industries, India (exporter),” HSBC said in a press release.
HSBC said the transaction has validated the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation. At present buyers and sellers use paper-based letters of credit (LCs) to complete transactions, which have to be sent to each party by post, courier or fax increasing costs and chances of delay. Read more
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