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HSBC processes first blockchain letter of credit using CNY with Voltron

Tuesday 3 September 2019 11:33 CET | News

HSBC has completed the first yuan-denominated blockchain-based letter of credit transaction within the Voltron trade finance platform.

This particular deal involved Hong Kong-based MTC Electronic exporting a shipment of LCD parts and panels to its parent company, Shenzhen MTC, based across the border from Hong Kong. The exchange of the electronic documents was completed in 24 hours, compared to the typical five to 10 days for conventional document exchange, the bank said.

As the first such transaction to use the Chinese currency, this deal marks a step forward in the use of the Voltron trade finance platform, developed by eight banks including BNP Paribas, and Standard Chartered as well as HSBC.

HSBC said, citing SWIFT data, that 1.2 million letters of credit, documents issued by a bank guaranteeing a buyer’s payment to a seller, worth USD 750 billion were issued into and out of China alone in 2018.


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Keywords: HSBC, Voltron, blockchain, China, yuan, CNY, letter of credit, trade finance, trade finance platform, letter of credit transaction, BNP Paribas, Standard Chartered
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Countries: World