Reserve Bank of India launches blockchain trade financing project

The project is launched in collaboration with lenders including HDFC bank, ICICI Bank and State Bank of India, among several others. Belgium-based SettleMint, US-based Corda Technologies and IBM are providing technology support for the project driven by the central bank’s Innovation Hub in Bangalore. 

The central bank’s project hopes to integrate blockchain technology into the core banking system to prevent letters of credit fraud. Letters of credits serve as financial contracts between a bank and a beneficiary that guarantees transactions are made when agreed conditions are met.