HSBC: Blockchain Ready For Commercial Use In International Trade
HSBC completes the first commercially viable international settlement trade transactions using the blockchain, thus opening the door for technology adoption on $ 9 trillion market international settlements, writes FT.
British bank reported, that the blockchain transaction consisted of the transfer of a letter of credit to the American agricultural company Cargill and showed that the technology was ready for commercial use.
“The next step will be attraction maximum number of participants, which may interest advantages of technology “, – stated HSBC Commercial Banking Innovation and Growth Head Vivek Ramachandran, noting that banks, logistics company, ports and customs services should also start using the technology before than can will be talk about its massive distribution. “We are considering this platform only from the point of view of practical usefulness “.
Cargill’s transaction consisted of supplying soybeans of Argentina to Malaysia. HSBC used blockchain-the Corda platform developed by the R3 consortium. Dutch bank ING, also using blockchain, acted as a counterparty.
IN difference from previous test transactions, transaction Cargill can be reproduced with the participation of those the same contractors, explained Ramachandran that allows you to consider possibility her further commercial use.
“it turning point in trade“, – quotes the words representative of Bloomberg bank. “Blockchain eliminates the need for paper harmonization, because the everything the participants united within the framework of one platform, and updates occur instantly “.