The Bangladesh department of the acknowledged worldwide financial institution HSBC has carried out a brand new blockchain-based system to import items from Singapore. So as to take action, the corporate used the Contour DLT platform to create a letter of credit score (LC) utilizing distributed ledger expertise.
HSBC Works With Blockchain Know-how
HSBC Bangladesh has used blockchain expertise to import 20,000 tonnes of gas to Bangladesh from Singapore. The corporate that offered the gas was a subsidiary of United Mymensingh Energy, known as United Group’s Singapore.
In accordance with the chief government of HSBC Bangladesh Md Mahbub ur Rahman, the transaction was a method to present how the financial institution is dedicated to implementing and utilizing new applied sciences to enhance commerce.
On the matter, Md Mahbub ur Rahman acknowledged:
“I consider this may usher in a brand new period of routing worldwide commerce transactions as companies and governments acknowledge transparency, safety and swiftness in performing duties utilizing blockchain expertise.”
It’s value mentioning that the implementation of blockchain expertise to conduct this transaction decreased the instances of the entire import course of from virtually 10 days to lower than 24 hours. Moreover, the blockchain platform was constructed on high of the R3’s Corda that has been used up to now by many different monetary firms on this planet.
On the identical time, the managing director of United Group, Moinuddin Hasah Rashi defined that gas oil LCs are time-sensitive and every second of the method is essential. With this new implementation of blockchain expertise, it could be attainable to extend effectivity and cut back prices.
The Contour blockchain platform is presently being utilized by different monetary establishments together with ING, Citi, Bangkok Financial institution, Normal Chartered, SEB, BNP Paribas and CTBC. HSBC can be a part of this blockchain community that has been developed since 2017.
Till now, there have been totally different testings of the Contour community and most of them have been carried out throughout this yr. The blockchain community can be utilized to execute cross border transactions because it was already carried out with Singapore and Bangladesh, and Vietnam and Thailand up to now.
Blockchain expertise has been rising over the past years and plenty of firms are already utilizing it to be able to have higher options and companies. Furthermore, a number of firms and huge monetary establishments are already creating their very own blockchain networks. That is serving to them work in a extra environment friendly method and stay on the forefront of innovation out there.