HSBC: First commercial transaction concluded via Blockchain

Europe's largest bank, HSBC, has concluded its first commercial trading transaction via the Blockchain. This was a letter of credit for Cargill issued to the Dutch lender ING. What used to take days was completed within 24 hours with the help of the blockchain.

As CNBC reported on May 14, HSBC (Hong Kong & Shanghai Banking Corporation Holdings PLC) has probably completed the world's first commercial trade finance transaction using Blockchain technology. HSBC is based in London and is the largest international bank in Europe. The transaction involved a letter of credit for the American food and agricultural company Cargill, which was issued to the bank ING. Part of this was a mass delivery of soybeans from Argentina to Malaysia.

Letters of credit are mostly used in international trade. They are contractual obligations of the buyer's bank to make payment to the seller when he presents certain documents. This gives buyers and sellers the greatest possible security over their trading business.

Previously, such a transaction had taken five to ten days and a lot of paperwork. With the use of Blockchain technology, trading could be completed within 24 hours. HSBC used the Corda platform of the block chain start-up R3.

One of the quotes from the Head of Growth and Innovation at HSBC, Vivek Ramachandran is saying:
"The need for paper voting is eliminated as all parties are linked on the platform and updates are immediate. The rapid turnaround could mean the release of liquidity for companies."

Another spokesman for the company emphasized that although proof of concept transactions with the Blockchain technology had already been carried out, HBSC was the first to use it commercially. The blockchain offers enormous potential for this, since it can process large amounts of data within a network and not only transparently, but also invariably. Santander Bank's recent announcement showed that banks are also beginning to appreciate these qualities.

Do you think banks will use existing cryptocurrencies for their kind of banking if all that will really come?
I think not, they're just using the concepts, but not existing currencies on the blockchain.
Will banks bear in mind payment coins? Is that all feasable?

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