MUMBAI, OCT 4, 2021
HSBC on Monday said it has successfully executed a blockchain-enabled live trade finance transaction between ArcelorMittal Nippon Steel India and UAE’s Universal Tube and Plastic Industries.
The transaction reinforces the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation.
With AM/NS India as the seller of steel goods to Universal Tube & Plastic Industries, UAE, the end-to-end paperless transaction was executed over the Contour platform. Contour, which has been built on blockchaintechnology,facilitates comprehensive digitisation of the end-to-end ‘Letter of Credit’(LC) transaction, including the e-presentation of trade documents via the interface with essDOCS’ CargoDocs platform.
The LC was issued by HSBC UAE for the importer, Universal Tube and Plastic Industries with HSBC India acting as the advising and negotiating bank for the exporter, AMNS India, it specified.
AMNS’s Chief Executive Officer Dilip Oommen said, “We are committed to providing smarter steel solutions for a better world. As a leading steel player in New Digital India, the company is continuously exploring avenues to strengthen its capabilities to automate and digitise the processes. Implementing Blockchain is a step in this direction and gives us a competitive advantage. The future of trade, both international and domestic, is increasingly going to be more dependent on innovations, such as blockchain platforms”
“The benefits and transformative impact of this technology are evident and we are confident that it will lead to greater adoption by corporates for their trade finance requirements,” HSBC India’s chief executive Hitendra Dave said.