HBSC, the global banking and financial services giant, and another major Indian banking institution named RIL (Reliance Industries), have finalized a financing transaction through the Blockchain, which is the first Blockchainized letter of credit transaction in history.
HBSC and RIL mark history in India
Since all this time we expected the real involvement of the Blockchain in financial services, we could not have hoped that this transaction between HBSC and RIL to mark the pace. A letter of credit transaction was completed through the Blockchain between HBSC's Indian subsidiary and Reliance Industries of India.
The transaction, from RIL to Tricon Energy, an American customer, could be done via an electronic knowledge technology called Bolero , introduced in November 2016. Bolero is a management tool for securities transfers to buyers, which has been resized for the Blockchain.
A transaction that says a lot about the performance of the Blockchain
Through this letter of credit transaction, RIL and HBSC have demonstrated the potential of the Blockchain, which not only facilitates institutional interactions (speed of transactions, transparency) but also offers better management of activities via reduced service costs. .
In this perspective, Srikanth Venkatachari from RIL mentioned this unparalleled potential of the Blockchain in a time reduction framework, which goes from seven days to less than 24 hours.
This initiative by HSBSC and RIL will enable other banks and financial institutions around the world to assess Blockchain's ability to address the traditional problems of traditional services.
What do you think of this first transaction in India? Give us your opinion in the comments section.