HSBC completed its first yuan-denominated blockchain letter of credit transaction, according to a Sept. 2 Reuters report, taking a step forward in its use of the Voltron platform, developed jointly with other large financial institutions.
MTC Electronic, of Hong Kong, was involved in the transaction. “The exchange of the electronic documents was completed in 24 hours, compared to the typical five to 10 days for conventional document exchange,” an HSBC representative told Reuters.
Thus far, transactions have been tests.
“We are hoping that we will have something by end of the year, maybe the first quarter of next year," said Ajay Sharma, HSBC regional head of global trade and receivables finance in the Asia-Pacific. “Clearly we are hoping that through this technology, the unit cost of doing a transaction comes down, along with other benefits, such as speed.”
The Voltron platform, developed by institutions such as Standard Chartered and BNP Paribas, is aimed at digitizing trade finance, increasing document exchange efficiency.
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