A shipment between Hong Kong and Dubai that involved linking two blockchain systems cut transaction costs by 40%.
HSBC collaborated with Landmark Group, a Middle Eastern retailer, to connect two blockchain platforms for the first time for the bulk shipment.
HSBC's trade finance blockchain, Voltron, integrated with Landmark Group’s platform ReChainME to enable all parties to access real-time data. This connection reduced transaction time by up to 12 days (40%).
In June the bulk shipment was transported from Bee Dee Industries in Hong Kong to Landmark Group’s BabyShop retail outlet in Dubai. A letter of credit (LC) was sent via blockchain, the first time Voltron has sent a LC between the United Arab of Emirates and Hong Kong.
HSBC said in a video: “Having the two platforms seamlessly connected meant all parties in the supply chain ecosystem were able to track and view the progress of the transaction, agree on the terms of the transaction including logistics, co-create and approve documents and fast track supplier payments, all in real time.
“This transaction marks a major step forward in the development of blockchain technology that will transform efficiency and productivity across the supply chain.”
Sunil Veetil, regional head of trade at HSBC MENA and Turkey, said: “In a world where businesses are increasingly positioning their supply chains across several markets, blockchain platforms will undoubtedly give them a competitive advantage by increasing the velocity of trade without compromising on privacy and security.”
Rajesh Garg, group chief financial officer at Landmark Group, said: “Embracing new and emerging technologies like blockchain in our physical and financial supply chain not only aids in improving speed-to-market efficiency but also reflects our commitment to driving transformation in the retail sector and ultimately creating value for our customers.”
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