Block-Chained Based Transactions for Reliance Industries is completed by the HSBC-ING Banks
The cross-border transactions, from the US-based company to India’s Reliance, is completed by the joint execution of Hong and Shanghai Banking Corp (HSBC) and ING Bank Belgium through blockchain enabling cross-border payment. The whole payment is done in the digital forms. The transaction allowed the digital transfer of the title of goods from the seller to the buyer. And also gave them access to trade underlying to be fully digitized. The ING bank issued the Letter of Credit (LC) for Tricon Energy USA to the HSBC India as the advising and negotiator for the Reliance Industries. The conventional exchanges for the paper-based documentation got the viability through the validation of the commercial and operational viability of the alternative blockchain transactions. The paper-based letters of credits (LCs) increases the cost and the chances of delay as they had to be sent to each party by post or courier. The US-based enterprise blockchain software firm R3 together with 8 banks is working as an open source based system with plans to expand the network and drive adoption across the banking sector. The 8 banks involved in this are HSBC, ING, Bangkok Bank, BNP Paribas, CTBC Holding, Natwest, SEB and Standard Chartered. The offer of reducing the timelines involved in the transaction from 7 to 10 days for the exchange of documents have been reduced to less than a day with the help of the blockchains, Joint CFO of Reliance Industries said. The transformation of the financial transactions and more transparency can be gained by the blockchain usages. The simple and faster transactions are possible with security. The overall efficiency of these transactions has improved the cost-effectiveness, quicker turnaround and unlocked liquidity in the business.