The Blockchain trade finance platform which was developed by eight banks. It is now ready for commercial release in Singapore in Q2 2020. The major banks which developed the blockchain trade finance platform are HSBC, BNP Paribas, and Citi bank.
On March south china morning post stated that the launch accompanies a successful test of the platform including over $30 million in letter-of-credit transactions last year. Letter-of-credit transactions are a payment mechanism that is widely used in international trade. In this payment mechanism, the bank gives a seller a financial guarantee for a buyer’s payment.
The coronavirus is continuing to shake the global markets. Coronavirus will cost $324m warns Schneider Electric. Many events around the globe are getting canceled. Events are getting delayed due to coronavirus threat. The coronavirus which started from Wuhan affected more than 80000 people and killed around 3000 people. Facebook also withdrew its annual global marketing summit which was supposed to be held in San Francisco.
Use of Blockchain Platform
The regional executive told reporters that the platform can help commercial trades move ahead even in times of disaster. Ajay Sharma, HSBC’s regional head of global trade and receivables finance, claimed that Exploiting blockchain for trade finance has succeeded in the physical limitation we have at present.
The company that operates Contour will have around 20 employees by the end of this year.
Blockchain technology is proving to be useful in the trading finance process. It allows automated verification of customs documents and corresponding financing balances. Transparent and realtime data sharing is possible with this technology.
Using R3’s Corda platform Oman, major oil and gas companies and HSBC Bank Oman SAOG operated their first fully digitized letter of credit on the blockchain.
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