09 Sep HSBC Executes Blockchain Letter of Credit Using Yuan
3 September 2019
On Tuesday HSBC announced it has completed the first yuan-denominated blockchain letter of credit (LC) using the Voltron platform.
This LC transaction was for audiovisual company MTC Electronic exporting raw materials from Hong Kong to its Shenzhen-based parent company.
In trade finance, significant challenges include manual paperwork, delayed payments and delayed shipments. Multiple entities in-between increases the chances of fraud. And a lack of a common platform for such transactions leads to miscommunication. Blockchain aims to address many of these issues, but especially manual paperwork and a common platform.
Voltron uses R3’s Corda technology with Hong Kong based CryptoBLK as technology partner. The platform is currently in the pilot phase and is expected to launch later this year or early in 2020. Apart from HSBC, the founding members are Bangkok Bank, BNP Paribas, CTBC Holding, ING, NatWest, SEB and Standard Chartered.
Read more at Ledger Insights, here.