HSBC announced its successful execution of a pilot live blockchain letter of credit (LC) transaction in Malaysia on Oct. 14.
The LC was for the import of resin by Malaysia’s Simply Packing from a Singaporean company, as reported by Fintech News Malaysia. HSBC’s Malaysia was the issuing bank, while HSBC Singapore acted as the advising bank.
This pilot aimed to give a demonstration of the use of blockchain LCs for small and medium-sized enterprises. As Simply Packaging is a mid-size firm, this pilot further indicates that LCs can be used by smaller firms rather than solely large corporations.
Shahid Chachia, the Managing Director of Simply Packaging, said, “I believe this will be the mode of issuing LC moving forward as businesses and the governments recognize the safety and swiftness in performing tasks using the blockchain technology.”
As the first pilot blockchain transaction for HSBC Malaysia, globally the eleventh, Fintech News Malaysia stated, “this marks a significant step for Malaysian companies in the digitization of trade.”
Stuart Milne, the CEO of HSBC Malaysia, commented:
“I am very pleased that HSBC has pioneered Malaysia’s first pilot blockchain LC transaction. This showcase our strong commitment and ability to support cross-border trade by Malaysia businesses using cutting-edge technology platforms.”
Previously reported on Blockchain.News, HSBC became the first bank to complete a financial transaction using the blockchain trade platform, we.trade based in Europe.
Source: Blockchain News