For the first time in India, HSBC Holdings Plc has facilitated a trade finance transaction of Reliance Industries to a US based client using Blockchain.
As a result, the time taken to process the documents was greatly reduced.
The transaction took place between Reliance and Tricon Energy.
“The use of blockchain offers significant potential to reduce the timelines involved in exchange of export documentation from the extant seven-ten days to less than a day,” said Srikanth Venkatachari, RIL Joint Chief Financial Officer.
The blockchain platform was integrated with the electronic bill of lading (eBL) platform to issue and manage an electronic bill of lading. It allowed a digital transfer of the title of goods from the seller to the buyer in the underlying trade.
This solutions brings all the concerned stakeholders to one platform and can be customised according to the needs as well.
Blockchain is known to be the most transparent system which maintains an ordered records called as Blocks.
Many banks like ICICI, SBI and Yes Bank are working on blockchain solutions.