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First trade finance transaction with blockchain

HSBC claimed that it had performed the world's first commercially viable trade finance transaction using blockchain technology.  The bank said that the exchange was performed in one day, compared to the five-to-10 days it normally takes to complete such exchanges through a paper-based System. Letters of credit are issued by one bank to another to guarantee that a payment will be received by a seller under a set of conditions. Traditionally this process would take a large amount of time, numerous paper records, and a lot of back and forth between the various parties involved. Blockchain technology promises to change that. For this transaction, HSBC used a platform developed by a blockchain start-up which works with a consortium of banks to come up with blockchain solutions to a variety of problems. While there have been proof-of-concept transactions performed using blockchain technology, HSBC's was the first that could have commercial applications.

(CF ed. / CNBC)

 

 

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