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Tata Steel India makes a Blockchain enabled transaction with UAE !!
Gaining the counter party trust and transperancy in negotiations is something which is required at all times during an international trade.
This has been the thing which is not so transperant and often end up in delaying the entire trade process and thus payments blockage.
And here we have a technology that creates such trust and ensure complte transperency by integrating with all the trade parties including Bankers, Customs authorities.
Here in the usecase, Entire trade documentation has been broadcasted onto the Blockchain network thus providing the following benefits –
- Enabling comprehensive visibility for all involved parties and enhances security in payment.
- Reduce the document negotiation and banking transaction cycle from week(s) to a few days.
- Shortening the transaction time of Letter-of-Credit (LC) transactions by allowing electronic transfer of title documents and connecting all parties allowing instantaneous updates.
Thus reducing the time and efforts to get the trade finance and overall reduction in trade cycle !
HSBC contour’s blockchain is used in the usecase which is developed by almost 7 such consortium banks including ING, BNP Paribas etc.
Happy reading..
Contact me for any doubts n discussions !
Tata Steel on Wednesday said it has received a “blockchain-enabled transaction”, a global first for the steel industry, from a UAE-based firm for a steel export order.
However, the steel maker did not disclose the size of the transaction.
“Tata Steel and HSBC successfully executed a blockchain enabled transaction, a global first for the steel industry. This transaction was executed on Contour”s blockchain platform,” a statement said.
Explaining the concept of a blockchain transaction, Tata Steel said this technology in trade finance enables comprehensive visibility for all involved parties and enhances security in payment. It helps reduce the document negotiation and banking transaction cycle from week(s) to a few days.
It also shortens the transaction time of Letter-of-Credit (LC) transactions by allowing electronic transfer of title documents and connecting all parties allowing instantaneous updates.
“Having pioneered the deployment of blockchain technology in trade finance, we are focused on enhancing its utilisation across a wider spectrum of trade finance transactions.
“This transaction is a significant step towards the mass commercialisation and adoption of this technology and we look forward to its transformative impact on trade finance,” said Hitendra Dave, Head-Global Banking & Markets, HSBC India.
Tata Steel further said UAE is India”s third largest trade partner. While the physical transfer of goods between India and UAE takes a relatively short time, the administrative paperwork can delay their delivery.
Reduced transaction time will help boost the efficiency of trade in the India-UAE corridor that is characterised by many close-proximity shipping routes, it said.
Source of this Post – Money Control
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