HSBC save 4 to 9 days using blockchain for "letter of credit" pilot
|We keep hearing about blockchain in finance but how many people really know how much it will benefit the big banks
HSBC has now let on some of the advantages in its latest use of the Voltron trade finance platform.
HSBC completed the first yuan-denominated blockchain-based letter of credit transaction according to Reuters reports.
The Voltron trade finance platform was developed by some of the biggest eight banks in the industry including BNP Paribas, and Standard Chartered as well as HSBC.
Ajay Sharma, HSBC’s regional head of global trade and receivables finance for Asia-Pacific commented saying:
“We are hoping that we will have something by end of the year, maybe the first quarter of next year, where will we know from Voltron what it costs, at which point, a lot of banks who might be sitting on the sidelines will be able to make a decision,” and he followed on by saying “Clearly we are hoping that through this technology, the unit cost of doing a transaction comes down, along with other benefits, such as speed.”
According to the bank, the exchange of the electronic documents was completed in 24 hours, compared to the typical five to 10 days for conventional document exchange.
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