As per The Hindu Business Line, India’s holding giant Reliance Industries (RIL) and a subsidiary of global banking and financial services firm HSBC have completed a blockchain-powered trade finance transaction.
The blockchain-based letter of credit (LoC) transaction, apparently the first of its kind in India, involved export by RIL to U.S. client Tricon Energy, which adequately reduced both time and costs of processing documentation. The new system represents a notable improvement in global export market interactions by bringing all parties together on one platform, The Hindu Business Line notes.
As per the article, the transaction solution has been implemented through the combination of blockchain with an electronic bill of lading (eBL) platform named Bolero. Initially introduced in November 2016, the Bolero eBL system enables for the issuance and management electronic bills of lading and facilitates digital transfers of goods titles from seller to buyers in a trade.
Reliance Industries joint chief financial officer (CFO) Mr. Srikanth Venkatachari said that the latest blockchain deployment has demonstrated a significant potential to reduce timelines associated in managing export documentation from the “extant seven-ten days to less than a day.”
Prior this week, a group of major global banks, including U.K. based HSBC, Standard Chartered, BNP Paribas started blockchain platform to address the financing of international trade. The platform, named eTrade Connect, is reportedly able to decrease the time required to approve trade loan application from 36 to 4 hours.
In May 2018, Financial Times reported on HSBC completing the first global trade finance transaction powered by blockchain. The included an Earlier this week, a group of major global banks, including U.K.-based HSBC, BNP Paribas, and Standard Chartered, launched a blockchain platform to address the financing of international trade. The platform, dubbed eTrade Connect, is reportedly able to reduce the time needed to approve trade loan applications from 36 to four hours.
In May of this year, international daily newspaper Financial Times reported on HSBC completing the first global trade finance transaction powered by blockchain. The transaction involved a LoC for U.S. food and agricultural conglomerate Cargill.