HSBC performs first trade finance transaction using blockchain
HONG KONG: HSBC Holdings Plc said on Monday it had performed the world's first trade finance transaction using blockchain technology, a major step in boosting efficiency and reducing errors in the multi-trillion-dollar funding of international trade.
HSBC and Dutch bank ING successfully completed the transaction for food and agricultural group Cargill, the British lender said in a statement.
The use of blockchain technology in the banking industry is expected to reduce the risk of fraud in letters of credit and other transactions as well as cut down on the number of steps used. Letters of credit are one of the most widely used ways of reducing risk between importers and exporters.