The banking giant HSBC completed the ‘world’s first’ blockchain-based trade finance transaction, reported Cointelegraph on May 14.
Last week, HSBC successfully completed a letter of credit for food and agricultural giant Cargill, which involved a shipment of soya beans from Argentina to Malaysia.
This successful transaction means that the blockchain could be integrated into the global trade finance market, which is worth $9 trillion.
Vivek Ramachandran, the head of innovation and growth for commercial banking at HSBC mentioned in a statement,
“We don’t envisage the platform as anything other than a utility.”
However, HSBC’s platform could involve some of the largest enterprises looking to save money on processing costs and enhance security on paper-based contracts.