India unit of British bank HSBC has executed India's first financial transaction using blockchain technology for a deal involving an export by Reliance Industries to its client Tricon Energy in the US.

Tricon Energy used HSBC (India)-engineered blockchain-enabled Letter of Credit (LoC) deploying electronic Bill of Lading (eBL) platform Bolero to benchmark the country’s adoption of disruptive decentralized ledger technology in domestic and cross-border transactions.

Bolero is a UK-based trade finance digitisation solutions provider. The blockchain-based system developed by Bolero allows issue and management of e-form bill of lading and is integrated with digital transfer of goods, titles involving buyers and sellers in any given trade.

The blockchain-enabled LoC transaction was for a shipment from the Mukesh Ambani-led Reliance Industries Limited (RIL) to US-based Tricon Energy. This blockchain-based financial transaction helped both the companies to reduce the time required to process the documents.

"The use of blockchain offers significant potential to reduce the timelines involved in exchange of export documentation from the extant seven-ten days to less than a day," RIL joint chief financial officer Srikanth Venkatachari was quoted as saying by PTI.

RIL further claimed claimed that the solution is a significant improvement for any organisation involved in buying and selling goods internationally, as it brings together all parties onto one platform.

Hitendra Dave, head of global banking & markets, HSBC (India), said, "The use of blockchain is a significant step towards digitising trade. It has a transformative impact on trade finance transactions and enables greater transparency and enhanced security, in addition to making it simpler and faster. The overall efficiency it brings to trade finance ensures cost effectiveness, quicker turnaround and potentially unlocks liquidity for businesses."

Banks across the world are adopting blockchain as a transparent, quick and secure platform for sharing documents, validating authenticity and enabling faster financial transactions.

Recent Blockchain Use by Indian Entities


Last Month, India's ICICI Bank joined JP Morgan's blockchain-based payment project called Interbank Information Network (IIN), and become the only bank from India to have joined JP Morgan's proprietary blockchain platform.

In September, National Stock Exchange of India Ltd (NSE) had conducted tests to use blockchain for e-voting for listed companies on a platform provided by Mumbai-based blockchain startup Elemential Labs

In August, in order to fight fake medicines problem in the country, government of India's policy maker, NITI Aayog, partnered with Oracle and local chain of hospitals, Apollo Hospitals, where Oracle will integrate its blockchain technology and a distributed ledger solution in pharmaceutical supply chain, which will create records that are unchangeable for each pharma transaction.

In April this year, India’s first blockchain-based network went live when three online bill-discounting exchanges -- Receivables Exchange of India (RXIL), A.TReDS, and M1xchange -- came together and implemented a blockchain-based solution for their operations to deter fraud.

In the same month, Kerala's Blockchain Academy of state-run IIITM-Kerala has become the first Indian Institution to get membership of Hyperledger Project.

Via ~ Business Today
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