As was reported by the Chartered Institute of Procurement & Supply, on the 10th of July, HSBC, the banking giant of international repute has tested out its blockchain-based trade finance platform Voltron which will help them in reducing the transaction time by 40%.
In order to arrange a shipment between Hong Kong and Dubai, HSBC collaborated with major retail organisation Landmark Group, which provided its blockchain platform ReChainMe. The companies linked up their respective platforms, and it was reported that this led to a massive reduction of transaction time by 12 days, or 40%.
Sunil Veetil, who is the regional head of trade at HSBC MENA and Turkey, said that blockchain-based platforms would provide businesses with a competitive advantage by increasing trade speeds. HSBC reportedly stated:
“Having the two platforms seamlessly connected meant all parties in the supply chain ecosystem were able to track and view the progress of the transaction, agree on the terms of the transaction including logistics, co-create and approve documents and fast track supplier payments, all in real time.”
In February, HSBC revealed that their blockchain-powered platform had been successful in cutting costs for foreign exchange trade settlement by a quarter. The platform is based on a distributed, but permissioned ledger and has reportedly enabled HSBC to coordinate payments in real time across their trading hubs in the Americas, Europe and the Asia Pacific.
Head of Global Trade and Receivable Finance at HSBC, Béatrice Collot, had earlier spoken passionately in favour of the transparency and instantaneity as offered by blockchain technology. According to Collot, blockchain will transform global trade finance by bringing together stakeholders and allowing information to be shared more transparently.