The recent report coming from India has made it known that the state of cryptos in the country has not been well defined. Despite this, India’s largest private sector firm, Reliance Industries has successfully commissioned its first blockchain powered trade finance transaction.
Reliance Industries First Dance with Blockchain Technology
Going by the recently released report, it was made known that Reliance Industries, has officially pioneered its first ever trade finance transaction involving multinational companies and a huge deal of money while using blockchain technology. The report has made it known that this trade finance transaction which was completed by the Indian oil and energy conglomerate was done with US-based Tricon Energy, a global chemical distributor.
The report made it known that the said transaction was an end-to-end ‘live’ transaction and it was executed over R3’s Corda blockchain.
The report also made it known that the Corda blockchain platform is a “single shared application, rather than requiring multiple isolated digital systems across various counterparties, located around the globe.”
HSBC India’s head of global banking and markets Hitendra Dave has also commented on this trade. He stated that:
“The use of blockchain is a significant step toward digitizing trade…The overall efficiency it brings to trade finance ensures cost effectiveness, quicker turnaround and potentially unlocks liquidity for business.”
Letter of Credit
The Letter of Credit—the bank guarantee of a buyer’s payment, was facilitated by HSBC and ING Bank Brussels. The report made it know that the letter of credit was issued by ING Bank for Tricon Energy USA as the importer with HSBC India participating as the negotiating bank for Reliance Industries as the exporter. The report also made it known that the shipment between the two energy firms in a fully digitized transfer of title.
Previously this type of transaction normally takes about 7 to 10 days before the complete processing of export documentation.