Blockchain tech to ease trade finance
Print Edition
AN HSBC and Bank of America Merrill Lynch venture and financial technology firm R3 said separately yesterday that they had created ways of using blockchain technology to simplify trade finance processes.
The two banks said they had joined with the Infocomm Development Authority of Singapore to emulate a letter of credit transaction. Letters of credit are one of the most widely used ways to reduce risk between importers and exporters, helping guarantee more than US$2 trillion worth of transactions, but the process creates a large paper trail and is time consuming.
R3 said more than 15 of its consortium member banks have also designed self-executing transaction agreements, known as smart contracts, on R3’s distributed ledger platform to process accounts receivable purchase transactions, known as invoice financing or factoring, and LOC transactions.
By putting the transaction on a distributed ledger, the importer and its bank, together with the exporter and its own bank, can see the data in real time.
Financial services companies around the world have been focusing on developing blockchain technology, with advocates saying it has the potential to save billions of dollars in costs and speed up transaction times. The technology, which underpins the digital currency bitcoin, creates a shared database in which participants can trace every transaction.
Talks are going on with other banks, corporate clients and shipping firms to further develop the technology, said Vivek Ramachandran, global head of product for HSBC's trade finance business.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
