Economy

HSBC performs first trade finance transaction with single blockchain system

HSBC performs first trade finance transaction with single blockchain system

The settlement covers the movement of bulk soybeans to Malaysia from Argentina, with the letter of credit for this issued by ING, a Netherlands based financier.

"HSBC and ING Bank have successfully executed a... finance transaction for global food and agriculture conglomerate Cargill using R3's Corda scalable blockchain platform", the statement said.

The transaction demonstrates that blockchain as a solution to trade digitisation, is commercially and operationally viable.

A visibly elated Vivek Ramachandran, HSNC's global head of innovation and growth for commercial banking had said that "this is an inflection point for how trade is conducted". Unlike previous trade finance deals that used blockchain in the past, this was the first time a single shared digital application was employed as opposed to multiple systems. HSBC's trade on the blockchain was completed in 24 hours.

HSBC handled the deal for United States food and agricultural group Cargill, in partnership with Dutch ING Bank NV.

It's a lot less exciting than some of the other blockchain technologies we've been promised, which have ranged from decentralised currencies like Bitcoin to literal diamond exchanges, but it's probably the most sensible indication yet of the future direction of the technology.

More news: Will Smith Details How He Became the 'Fresh Prince of Bel-Air'

According to HSBC, it was the first scalable live trade finance transaction using blockchain.

Instead of banking on paper-based records that remain with the stakeholders and are prone to the counterparty default risk, blockchain's decentralized ledger technology is set to overcome these shortcomings. "The quick turnaround could mean unlocking liquidity for businesses", added he.

"It is only by working together that we will create a platform that all those involved in trade want to use, from banks, exporters and shippers to regulators and lawmakers". This is because they will finally be able to carry out transactions using a faster and simpler method while also benefiting from more security and transparency.

R3 and the group of 12 banks supporting the Corda application are seeking to expand the network on an open basis to drive adoption across the industry.

According to Ramachandran, HSBC has another client lined up for another similar transaction.


  • Decorated Carrick makes immediate switch to coaching role at Man Utd

    Decorated Carrick makes immediate switch to coaching role at Man Utd

    While Carrick might be hanging up his boots, his United team-mates still have the FA Cup final against Chelsea to prepare for. I look forward to working with him. "I have a lot of memories to cherish, some I'll never forget, especially of this place".
    Tropical Downpours: spotty but heavy storms begin Tuesday

    Tropical Downpours: spotty but heavy storms begin Tuesday

    A few strong to severe thunderstorms are possible along a almost stationary surface boundary in northern and central Indiana. Mother's Day turned out to be fairly active with showers and storms passing through this afternoon.
    Mahira Khan has arrived at Cannes and it's a attractive  sight

    Mahira Khan has arrived at Cannes and it's a attractive sight

    And as expected, Mahira Khan, winning hearts, put forward her A game when it came to walking the red carpet at Cannes . Like every year, the actress arrived at the French Riviera as a brand ambassador of cosmetic brand L'Oréal.
  • Pope's Lamborghini Huracan sells for £630000 at auction

    Pope's Lamborghini Huracan sells for £630000 at auction

    Instead, £415,000 from the sale will be donated to the Iraqi city of Nineveh, which was "besieged by Isis", Metro reports. A one-off Lamborghini Huracan that was donated to the Pope previous year has raised more than £630,000 for charity.
    IPhone explodes in Las Vegas fix  shop

    IPhone explodes in Las Vegas fix shop

    CBS reported the phone's owner brought it in because the screen was cracked, which can be a sign of an overheated battery. Battery safety is back in the spotlight thanks to anonymous video of an iPhone 6s exploding at a fix shop.
    Asiana aircraft hits, 'slices off' stabiliser of Turkish Airlines plane in Istanbul

    Asiana aircraft hits, 'slices off' stabiliser of Turkish Airlines plane in Istanbul

    That flight was rescheduled for Monday and the passengers were reportedly offered hotel accommodations. An Asiana Airlines plane collided with a Turkish aircraft during taxi in Istanbul.
  • Benitez delivers end-of-season ultimatum to Ashley

    Benitez delivers end-of-season ultimatum to Ashley

    You're right, this is stating the obvious just a touch, but this has been a legitimate concern of Chelsea fans in recent weeks. Asked what damage that will do to last season's title winners he replied: "I think I'm the last person to speak about this".
    We now know why NBC made a decision to  save Brooklyn Nine-Nine

    We now know why NBC made a decision to save Brooklyn Nine-Nine

    For 13 glorious episodes, Jake Peralta is coming back to television and he's bringing the whole Brooklyn Nine Nine gang with him. Sorry, Lucifer fans (and I'm one too, so I'm not happy).
    NASA Will Send The First Helicopter On Mars

    NASA Will Send The First Helicopter On Mars

    In five decades of exploring Mars, NASA has sent orbiters, landers and rovers to explore Earth's neighbor. For starters the 'copter will climb to 3 meters, hover for 30 seconds, then descend.
  • Retail inflation inches higher at 4.58% in April vs 4.28% in March

    Retail inflation inches higher at 4.58% in April vs 4.28% in March

    According to Shubhada M Rao, chief economist at Yes Bank Ltd.in Mumbai, core inflation was at 5.9 percent - a 44-month high. Fruit prices rose an annual 9.7 per cent during April, while housing shot up 8.5 per cent.
    Ohtani dominant in 6th start as Angels beat Twins 2-1

    Ohtani dominant in 6th start as Angels beat Twins 2-1

    He then adds, "But to me, with what he does on the mound and with the bat, [Ohtani is] probably the best player in the world". The Angels got one back in the bottom of the third when Cozart scored on a chopper to third by Justin Upton to make it 3-1.
    European league: How it could work

    European league: How it could work

    Arsenal wave goodbye to the long-serving gaffer this afternoon after he announced his decision to quit the Emirates last month. Huddersfield's most recent victory over Arsenal came at home in January 1971.