HSBC uses blockchain for Letter of Credit between Australia and China

Tuesday 2 April 2019 13:09 CET | News

HSBC has announced it used the Voltron blockchain trade finance platform for a live Letter of Credit (LC) transaction between Australia and China.

Fox & Lillie sent a shipment of wool from Australia to China SDIC International Trade Nanjing Company. Both companies are HSBC clients.

Voltron is a consortium of eight banks which is leveraging R3’s Corda technology to digitise the LC process with the benefit of cutting the processing time and cost. The banks are HSBC, ING, Bangkok Bank, BNP Paribas, CTBC Holding, NatWest, SEB, and Standard Chartered. The group is looking to expand the number of banks involved.

Apart from Voltron, HSBC is also a member of the open account trade finance network that initially is targeting SMEs. Plus it’s participating in the eTradeConnect initiative in Hong Kong. In China, HSBC’s local subsidiary was named as a member of a domestic trade finance initiative orchestrated by the China Banking Association.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: HSBC, letter of credit, trade finance, Australia, China, Voltron, trade finance platform, blockchain, LC transaction,, eTradeConnect initiative, Hong Kong, Asia, APAC
Countries: World