HSBC Holding announced the world's first commercial financing transaction using blockchain.
HSBC according to the description of HSBC and the Dutch bank ING which is an important step towards increasing productivity and reducing errors in multi- Food and Agriculture Group successfully transferred funds to Cargill .
It is emphasized that the use of Blockchain technology in the banking sector will reduce the risk of fraud in letter of credit letters and other transactions and take a few extra steps already used.
Credit letters are one of the most common methods used to reduce the risks between importers and exporters. Using this method, transactions worth more than $ 2 trillion can be guaranteed, but it can take 5 to 10 days to process and exchange long paperwork.
Vivek Ramachandran is the global head of innovation and growth at the HSBC commercial bank division.
"Buyers and sellers who use the credit letter transaction through physical document transfer use it to perform some financial transactions."
The meaning of this new blockchain-based transaction for institutions is that trade financing transactions are faster
According to a statement made by HSBC on the subject according to a study by the United States the whole Asia-Pacific hand documents and documentation
The transfer to the electronic system led to an increase in the time required to export the product by 44% and an increase in costs by 31%