HSBC and ING tap Corda for blockchain enabled transaction

HSBC India and ING Bank Brussels have executed a blockchain enabled, live trade finance transaction with Reliance Industries and Tricon Energy.

The Hindu Business Line reports that ING Bank issued the letter of credit transaction for Tricon Energy and HSBC India was the advising and negotiating bank for Reliance Industries. This was executed on R3’s Corda blockchain platform.

“This transaction validates the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation,” HSBC India said, adding that time and cost involved in processing paper documents are often are deterrents for exporters and delays the pace of trade.

Hitendra Dave, Head-Global Banking and Markets, HSBC India, commented: “The use of blockchain is a significant step towards digitising trade and enables greater transparency and enhanced security in addition to making it simpler and faster.”

R3, HSBC and ING, along with Bangkok Bank, BNP Paribas, CTBC Holding, NatWest, SEB and Standard Chartered, are planning to expand the Corda platform on an open source basis to drive adoption across the industry.