Confirms the commercial and operational viability of the transaction blockchain As an alternative to traditional exchanges for paper-based documentation, according to a statement from HSBC.
In the deal, ArcelorMittal Nippon Steel (AMNS) sold goods to Universal Tube, and the transactions were done on a platform built on end-to-end paperless blockchain technology, it said, adding that it included the digitization of end-to-end ‘Letters of Credit’ (LCs) . transactions.
The solution implemented in this transaction is an upgrade for organizations engaged in the international trade of goods, as it allows all parties to use a unified platform thereby streamlining and simplifying the process.
The LC was issued by HSBC UAE to the importer, Universal Tube and Plastic Industries, with HSBC India acting as the consultant and negotiating bank for the exporter, AMNS India, it specifies.
Dilip Oommen, chief executive of AMNS, said such transactions give it a competitive edge and the steelmaker is constantly exploring avenues to strengthen its capabilities to automate and digitize processes.
Hitendra Dave, Chief Executive, HSBC India said, “The benefits and transformative impact of this technology are clear and we are confident that this will lead to greater adoption by corporates for their trade finance needs.”