HSBC Bangladesh has just finished the first-ever blockchain-powered cross-border trade of the country. In this trade, it has imported 20,000 tonnes of fuel oil from United Mymensingh Power, Singapore. Moreover, United Mymensingh Power is a Singapore-based subsidiary firm of the United Group. It is revealed that the trade was settled using the Line of Credit (LC).
Md Mahbub ur Rahman, CEO of HSBC Bangladesh, has said that this trade is showing HSBC’s commitment towards cross-border trade using the cutting-edge technology platforms. He is also aiming that recent trade will help the government to realize the importance of blockchain technology in trade. Blockchain helps to make transactions more swift, secure, and transparent.
Moinuddin Hasan Rashi, Managing Director at United Group, has said that HSBC Bangladesh has made great use of blockchain technology to reduce the transaction time. The transaction time is now reduced to less than 24 hours. Previously, it was used to be between 5 to 10 days.
The blockchain platform Contour is used by HSBC Bangladesh to make this trade successful. Contour is owned by 8 different financial institutions and HSBC is one among them. 80 entities across the 17 different countries have tested the platform, which leads to its launch at the starting of 2020. The platform has also settled a 176,000 iron ore trade between Malaysia and China and was marked as a great success for the platform. However, the platform is proving to be of great use in making cross-border blockchain transactions, that too in such a short span of time.