India’s Richest Person Taps Blockchain To Conduct Trade Finance Transactions

The oil and gas conglomerate named Reliance Industries, that is owned by Mukes Ambani who is the richest person in India, has officially announced the use of blockchain in order to conduct its first trade finance transaction. This topic went viral in our blockchain news section and is now among the most popular articles on our DC Forecasts crypto news site.

As the news release from HSBC India noted, Reliance Industries has recently executed a “live” blockchain-powered trade finance transaction in collaboration with the US-based global chemical distributor named Tricon Energy.

The end-to-end transaction was carried through the banking majors HSBC India and ING Bank Brussels, and was put on enterprise consortium R3’s Corda blockchain platform, as the release officially noted.

A letter of credit was issued by ING Bank for Tricon Energy USA (the importer) with HSBC India as the advising and negotiating bank for Reliance Industries, the release explains. Following this, the head for global banking and markets at HSBC India, Hitendra Dave, officially stated:

“The use of blockchain is a significant step towards digitising trade. The overall efficiency it brings to trade finance ensures cost effectiveness, quicker turnaround and potentially unlocks liquidity for businesses.”

Currently, the traditional method to underpin transaction between importers and exporters is through paper-based letters of credit, with each party sending documents by post or fax. This is a manual process that is greatly revolutionized through blockchain and the blockchain-powered trade finance platform, which is meant to digitize the entire process and save time and cost.

“The use of blockchain offers significant potential to reduce the timelines involved in exchange of export documentation from the extant 7 to 10 days to less than a day,” according to Srikanth Venkatachari who is the joint chief financial officer at Reliance Industries.