HSBC Bank Uses Blockchain Technology For International Trade Transaction
According to the Financial Times, HSBC Bank used distributed ledger technology (DLT) in its operation. Employees of the financial institution have transferred a letter of credit to the American agricultural firm Cargill based on blockchain.
The Bank used the Corda blockchain platform developed by R3 company. ING bank from the Netherlands provided the contractor services, and the transaction itself involved the soybean supply from Argentina to Malaysia.
One of the HSBC Bank top managers, Vivek Ramachandran, stated that blockchain brings trading operations to the level, where the paper workflow no longer needed, all participants operate within the same platform, and updates are carried out instantly.
Vivek Ramachandran stresses that the bank aims to attract as many sides interested in blockchain technology as possible. In order to widely implement blockchain technology to banking and finance, it first has to be tested among financial and logistics companies, as well as customs, seaports, etc.
As previously reported, HSBC Bank intends to launch the real-time transaction service using blockchain technology.