HSBC completes the first RMB-denominated blockchain letter of credit transaction

HSBC said on Tuesday that it has completed the first RMB-denominated blockchain letter of credit transaction.

1

(Source: Pixabay )

Like many competitors, HSBC has been seeking to use digital ledger technology to streamline traditional paper and bureaucratic financing transactions.

As the first letter of credit transaction using the Renminbi, it marks the use of Voltron, a blockchain trade financing platform developed by eight banks including BNP Paribas, Standard Chartered Bank and HSBC.

To date, the platform transactions have been applied primarily to individual pilot cases. However, Ajay Sharma, head of global trade and accounts receivable financing at HSBC Asia Pacific, said the platform is making progress toward a comprehensive goal that could become a business model acceptable to banks. He said:

We hope to understand the cost of using Voltron at the end of this year, perhaps before the first quarter of next year. By then, many banks that are currently on the sidelines will make a decision. We hope to reduce the unit cost of trading and increase the speed of trading through this technology.

HSBC quoted SWIFT data as saying that in 2018 alone, there were 1.2 million letters of credit worth $750 billion (banks issued to guarantee the purchase of certificates from sellers) issued inside and outside China.

The transaction involves Hong Kong-based MTC Electronic exporting a number of liquid crystal display parts and panels to its parent company, Shenzhen Zhaochi Co., Ltd. HSBC said that the transaction of electronic documents is completed within 24 hours, while traditional paper documents usually take 5 to 10 days.

In May last year, HSBC announced the completion of the world's first letter of credit transaction using blockchain technology. In April this year, it announced the completion of the first blockchain cross-border letter of credit transaction in mainland China.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Exchange Real Volume Report (on) | TokenInsight

Summary of points: 1. According to the report, 36% of the exchanges (11) have a real trading volume ratio higher than...

Opinion

Amazon's participation and the skyrocketing value of AI company Anthropic become FTX's biggest hope of repaying the debt?

FTX previously invested $500 million as a lead investor in Anthropic's Series B financing round, so the expected appr...

Blockchain

Research Report | Blockchain Economics Panorama and Future: Exchange Compliance

Author: BlockVC industry research team Source: BlockVC Editor's Note: The original title is "Postal Chain E...

Blockchain

We sorted out 40 "running road" cryptocurrency exchanges, all of which share these common routines

Article | Interchain Pulse · Liangshan Huarong On February 23, the ZG exchange was exposed as suspected to be ru...

Blockchain

Part of the speculative platform, the blockchain heat is “revived”, and the regulators successively punched out virtual currency transactions.

Reporter Zhang Mo Beijing reports Source: Economic Information In response to the recent resurgence of some of the vi...

Opinion

Former close friend to testify against SBF, list of other witnesses revealed.

SBF's trial started on October 2nd, and his once closest friends will testify in court, becoming his biggest threat. ...