HSBC and ING held for the U.S. agricultural giant Cargill, the first operation of trade financing using a single blockchain system.
by Reuters, the company said that the first in the world carried out a similar operation. The deal was in the export of soybeans from Argentina to Malaysia, during which Cargill Geneva sold the goods on behalf of its Argentine unit, and Cargill Singapore received it on behalf of the Malaysian branch of the company.
HSBC noted that, while other transactions on trade financing was carried out with the use of the blockchain with other technologies, the transaction Cargill was the first that used only one blockchain app. The transaction was carried out with the use of a letter of credit on the platform from Corda R3.
The letter of credit was issued by HSBC, while ING acted as a banking consultant. The whole process took 24 hours instead of the standard 5-10 days. The letter of credit was exchanged on the blockchain, while the waybill and other elements of the transaction were conducted without the involvement of technology.
After successful transaction, HSBC plans to focus on enhancing the testing and ultimately aimed at the promotion and implementation of the system throughout the industry, says Vivek Ramachandran (Vivek Ramachandran), international head of innovation at HSBC Commercial Banking.
«We need to do a few more steps before we will be able to engage in the widespread diffusion of technology», he said.
We will remind, in March of this year, HSBC said
about plans to launch several pilot programs on the blockchain.
«This technology has come a long way, and now we do not doubt its reliability and ability to scale,» said then senior Manager of innovation at HSBC, Joshua Crocker (Joshua Kroeker).