October 17, 2019 by Antoine
The banking giant HSBC is revolutionizing its services by issuing a letter of credit on a Blockchain in its subsidiary in Malaysia.
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A project to import resin
Fintech News Malaysia has reported on the response of Simply Packaging in the import of resin from a singaporean company anonymous. The subsidiary in malaysia, HSBC bank has been designated for the execution of financial transactions between the two parties.
This is the eleventh transaction completed by HSBC and the first pilot project of this kind for its subsidiary, malaysian. Stuart Milne, CEO of HSBC in Malaysia has commented on the initiative saying :
“I am very pleased that HSBC has been the pioneer of the first transaction pilot of LC in Malaysia. This demonstrates our firm commitment and our ability to support the cross-border trade business to malaysia using cutting-edge technology platforms “.
The two multinationals in asian are very pleased with the smooth running of the business despite the heaviness of the steps in the paperwork. This being the case, the use of the Blockchain significantly reduces the loss of time, to the great benefit of trade.
HSBC technology and the Blockchain
The paperwork often disrupt the delivery of the goods flow, which also leads to additional expenditure.
And yet, the pilot project was able to reduce the period from five to ten days to 24 hours, which is a feat in cross-border trade.
HSBC was able to achieve the first operation of a letter of credit denominated in yuan on a Blockchain with the platform of trade finance Voltron in September.
Also, the Blockchain has gained ground in the banking sector over the past few years. While some governments are sceptical of the contribution of such technology unchangeable and transparent in the rapidly changing world, other open gladly to the technology Blockchain in spite of the remarks to be denigrating.
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