HSBC Completes ‘World’s First’ Blockchain Trade Finance Deal, Ships SoybeansMay 14, 2018 6:51 pm
CoinTelegraph reports the world’s first-ever trade finance transaction powered by blockchain has been completed by UK-based banking giant HSBC, the Financial Times reported Monday.
According to multiple news sources, HSBC, the world’s largest trade finance institution, completed a letter of credit for food and agricultural giant Cargill, the US’ largest private company in terms of revenue, the report said.
The now-completed deal, CoinTelegraph reports, involving a shipment of soya beans from Agentina to Malaysia, and was processed last week.
Because of the successful transaction, the report said, there is now a potential for blockchain to become more seriously involved in the global trade finance market, worth approximately $9 trillion, the Financial Times reported.
“We don’t envisage the platform as anything other than a utility,” head of innovation and growth of commerical banking at HSBC Vivek Ramachandran at HSBC is quoted by FT as saying in a statement.
That “utility” could however ultimately involve some of the world’s largest corporations looking to save on processing costs and improve security over paper-based deals, CoinTelegraph reported.
– WN.com, Jack Durschlag