HSCB Claims “World’s First” Trade Finance Transaction Via Blockchain
Lat Monday, HSBC says that it has conducted the world’s first trade finance transaction using blockchain technology when it issued a credit letter for U.S. food and agriculture company Cargill.
The letter of credit, which is a guarantee from one bank to another, was Issued by HSBC to Dutch firm ING for a bulk shipment of soybeans from Argentina to Malaysia. HSBC and ING revealed that the transaction, which normally would take 5 to 10 days, was done within 24 hours.
The transaction was performed on a platform developed by blockchain start-up R3 called Corda which is already being used by a number of banks for their blockchain needs.