Banking and monetary services giant HSBC has completed the primary yuan-denominated letter of credit transaction on a blockchain using the Voltron trade finance platform.

As Reuters reported on Sept. 2, HSBC conducted the primary blockchain-based yuan-denominated letter of credit transaction deploying R3’s Corda-powered Voltron platform. within the cross-border transaction, Hong Kong-based electronics manufacturer MTC electronics exported a shipment of LCD product to its parent firm Shenzhen MTC.

24 hours rather than 10 days

The blockchain platform apparently enabled the parties to exchange electronic documents in twenty four hours rather than the regular 5 to 10 days needed for traditional document exchanges. Commenting on the deal, Ajay Sharma, the regional head of worldwide trade and assets finance for Asia-Pacific at HSBC, said:

“We hope that we'll have something by end of the year, perhaps the first quarter of next year, where can we know from Voltron what it costs, at that point, a lot of banks who could be sitting on the sidelines will be able to create a decision.”

Streamlining trade finance documents

R3 together with eight banks — as well as Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, NatWest, SEB and normal leased — at the start launched Voltron last Oct in an exceedingly bid to change trade finance documents and attract additional member banks and firms.

In August, London-based bank and monetary services firm normal leased completed its initial cross-border blockchain letter of credit transaction within the oil industry with Thai state-owned oil giant PTT group.

The pilot consisted of digitizing and simplifying the end-to-end exchange of data between all parties in an exceedingly shipment of an oil product from Thailand to Singapore.

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