Oil and gas conglomerate Reliance Industries, owned by the richest person of India Mukesh Ambani, who first used the blockchain for the transaction on financing of trade.
According to a press release from HSBC India from November 4, Reliance Industries recently held a “real” blockchain transaction for financing trade with the us distributor of chemical products Tricon Energy.
Bilateral transaction was supported by Bank companies HSBC India and ING Bank (Brussels), and was implemented on a blockchain platform Corda consortium R3.
In this case, Corda was integrated with the platform of the British company to digitize operations, Bolero International, and the aim of the operation was the issue and management of electronic bill of lading.
The release reported that ING Bank has issued letters of credit through the blockchain for the importer Tricon Energy USA, while the Bank HSBC India has acted as a consultant and negotiator for the company-exporter Reliance Industries. The letter of credit is a Bank guarantee to the seller that the purchaser will be paid.
The head of HSBC India, global banking Hitendra Dave said:
“The use of the blockchain is an important step towards the digitization of trading. This greatly increases the efficiency of trade financing reduces the time of execution of orders and provides liquidity of the business.”
Currently, importers and exporters of used paper letters of credit to support transactions and sending of documents is done either by mail or by Fax. Such manual processing of documents not only hampers trade but also increases costs.
On the other hand, a blockchain platform for trade Finance digitizing this process, thereby saving time and money.
The representatives of Reliance Industries said that the exchange of export documentation occurred less than a day “instead of the usual 7-10 days.”