Mumbai: In a global first for the steel industry, Tata Steel has used a blockchain platform pioneered by HSBC to complete a trade finance transaction with a UAE-based company. Blockchain-based platform Contour has enabled end-to-end digitisation of the letter-of-credit transaction, including the e-presentation of trade documents. It also enables the parties involved to transfer, manage and present electronic bills of lading and other supporting documents within its platform.
Trade finance typically involves a lot of paperwork. Digitising the process on the blockchain platform makes it more efficient and reduces risks of fraud.
Tata Steel’s export to the Dubai-based Universal Tube & Plastic Industries was enabled by HSBC India and HSBC UAE.
“The use of blockchain technology in trade finance enables comprehensive visibility for all involved parties and enhanced security. It also reduces the document negotiation and banking transaction cycle times from weeks to a few days, thereby aiding unlocking of working capital for businesses,” said Hitendra Dave, head (global banking & markets), HSBC India.
The platform is seen of particular significance to the India-UAE corridor as it is India’s third-largest trade partner and the physical transfer of goods often takes place faster than the completion of administrative paperwork, which delays delivery.
Trade finance typically involves a lot of paperwork. Digitising the process on the blockchain platform makes it more efficient and reduces risks of fraud.
Tata Steel’s export to the Dubai-based Universal Tube & Plastic Industries was enabled by HSBC India and HSBC UAE.
“The use of blockchain technology in trade finance enables comprehensive visibility for all involved parties and enhanced security. It also reduces the document negotiation and banking transaction cycle times from weeks to a few days, thereby aiding unlocking of working capital for businesses,” said Hitendra Dave, head (global banking & markets), HSBC India.
The platform is seen of particular significance to the India-UAE corridor as it is India’s third-largest trade partner and the physical transfer of goods often takes place faster than the completion of administrative paperwork, which delays delivery.