The Bangladesh department of the acknowledged international bank HSBC has applied a new blockchain-based system to import items from Singapore. In order to achieve this, the corporate used the Contour DLT platform to create a letter of credit score (LC) utilizing distributed ledger know-how.
HSBC Works With Blockchain Technology
HSBC Bangladesh has used blockchain know-how to import 20,000 tonnes of gasoline to Bangladesh from Singapore. The firm that bought the gasoline was a subsidiary of United Mymensingh Power, referred to as United Group’s Singapore.
According to the chief govt of HSBC Bangladesh Md Mahbub ur Rahman, the transaction was a method to show how the bank is dedicated to implementing and utilizing new applied sciences to enhance commerce.
On the matter, Md Mahbub ur Rahman acknowledged:
“I believe this will usher in a new era of routing international trade transactions as businesses and governments recognize transparency, security and swiftness in performing tasks using blockchain technology.”
It is worth mentioning that the implementation of blockchain know-how to conduct this transaction decreased the occasions of the entire import course of from nearly 10 days to lower than 24 hours. Furthermore, the blockchain platform was constructed on top of the R3’s Corda that has been used within the past by many different monetary firms on the planet.
At the identical time, the managing director of United Group, Moinuddin Hasah Rashi defined that gasoline oil LCs are time-sensitive and every second of the method is essential. With this new implementation of blockchain know-how, it might be attainable to improve effectivity and scale back prices.
The Contour blockchain platform is at present getting used by different monetary establishments together with ING, Citi, Bangkok Bank, Standard Chartered, SEB, BNP Paribas and CTBC. HSBC is also half of this blockchain network that has been developed since 2017.
Until now, there have been totally different testings of the Contour network and most of them have been carried out throughout this year. The blockchain network can be utilized to execute cross border transactions as it was already performed with Singapore and Bangladesh, and Vietnam and Thailand within the past.
Blockchain know-how has been rising over the last years and lots of firms are already utilizing it so as to have better options and services. Moreover, a number of firms and large monetary establishments are already creating their own blockchain networks. This helps them work in a more environment friendly method and stay on the forefront of innovation available in the market.