certify
Home arrow Article arrow Article Detail

Firm Owned by India's Richest Man Turns to Blockchain for Trade Finance

Profile Image

Crypto Business World Follow

INDIA

Nov, 05 2018

Nov, 05 2018

likes | comments 0

Article Image

Oil and gas conglomerate Reliance Industries – owned by India's richest person, Mukesh Ambani – has used blockchain to conduct its first trade finance transaction.

According to a news release from HSBC India shared with CoinDesk on Sunday, Reliance Industries has recently executed a "live" blockchain-powered trade finance transaction in collaboration with US-based global chemical distributor Tricon Energy.

The end-to-end transaction was facilitated by banking majors HSBC India and ING Bank, Brussels, and carried out on enterprise consortium R3's Corda blockchain platform, the release adds.

The Corda platform was integrated with a platform provided by U.K.-based trade finance digitization firm Bolero International, and was used to issue and manage an electronic bill of lading.

Using the blockchain platform, a letter of credit was issued by ING Bank for Tricon Energy USA (the importer) with HSBC India as the advising and negotiating bank for Reliance Industries, India (the exporter), the release explains. A letter of credit is a bank guarantee for a buyer's payment to a seller.

HSBC India's head for global banking & markets, Hitendra Dave, said:

"The use of blockchain is a significant step towards digitising trade. The overall efficiency it brings to trade finance ensures cost effectiveness, quicker turnaround and potentially unlocks liquidity for businesses."

Currently, importers and exporters use paper-based letters of credit to underpin transactions, with each party sending documents either by post or fax. This manual process not only slows the pace of trade, but also increases the costs.

The blockchain-powered trade finance platform, on the other hand, is aimed to digitize that process, thereby saving time and cost.

"The use of blockchain offers significant potential to reduce the timelines involved in exchange of export documentation from the extant 7 to 10 days to less than a day," said Srikanth Venkatachari, joint chief financial officer at Reliance Industries.


Source: Coindesk


likes | comments 0

Profile Image

Crypto Business World

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
Innovative Bitcoin Tool Empowers Billions of Companies with Lightning-Fast BTC Payments, Revolutionizing the Trillion-Dollar Market

The LINER (Lightning Index Rate) index is a cutting-edge tool that Amboss, a well-known Lightning data provider, has released in a bid to spur business adoption of Bitcoin's Lightning Network.;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.