HSBC, the global banking giant, announced a successful letter of credit (LC) transaction based on the blockchain in Malaysia.
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Malaysia's local financial technology news media "Financial Technology News Malaysia" reported on this progress on October 14, and pointed out that the deal involves packaging company Simply Packaging to import resin from an unspecified Singapore chemical company. The issuing bank is HSBC Malaysia and the designated bank is HSBC Bank Singapore.
According to the report, this is the eleventh blockchain-driven transaction conducted by HSBC and the first such pilot conducted by its Malaysia branch. HSBC Malaysia CEO Stuart Milne commented on this successful test:
“I am very pleased that HSBC has pioneered the first pilot blockchain LC transaction in Malaysia. This reflects our strong commitment and ability to leverage the cutting-edge technology platform to support Malaysian companies in cross-border trade.”
HSBC participates in blockchain
According to the article, the trade volume between Malaysia and Singapore last year exceeded $85 billion, and the usual administrative paperwork usually delayed the delivery of goods transported through this trade route. It has been reported that the exchange and processing of the documents involved takes an average of 5 to 10 days, and this time the blockchain-based pilot managed to reduce the time to 24 hours.
As Cointelegraph reported in September, HSBC had already completed the first renminbi-denominated letter of credit transaction on the blockchain using the Voltron trade finance platform.