This blockchain-enabled letter of credit transaction facilitated shipment between Reliance Industries and Tricon Energy. It was an integration between electronic bill of landing provider and a blockchain-based trade finance platform, which enabled the transfer of title.
This end-to-end transaction was executed on enterprise software firm R3’s Corda blockchain platform, which is a single shared application, rather than requiring multiple isolated digital systems across various counterparties, located around the globe. The Letter of Credit (LC) was issued by ING Bank for Tricon Energy USA (importer) with HSBC India as the advising and negotiating bank for Reliance Industries, India (exporter).
At present, buyers and sellers use paper-based LCs to underpin transactions. Physical documents are sent to each party in the transaction by post, courier or fax. While these paper documents provide certainty, the time and cost involved in processing them are deterrents for exporters and inters and impairs the pace of trade.
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