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ING Bank Execute A Blockchain Trade Transaction For Cross-Border Payment

India’s Reliance Industries will have access to the first ever blockchain-based trade transaction. This comes as a result of a joint execution between Hong Kong and Shanghai Banking Corp (HSBC) India and ING Bank Belgium. The blockchain platform will enable a cross-border payment from a US-based company. In addition, it is an alternative to conventional exchanges which often use paper-based documentation.

Presently, buyers and sellers can only complete their transactions through the use of paper-based letters of credit (LCs). Apparently, only a single bank, ING Bank for Tricon Energy USA issues the LC’s guaranteeing payment received under a set of conditions.

Blockchain has the potential to upend various industries such as healthcare and insurance because they are among many that heavily rely on long paper trails.

The technology enables a faster processing of transactions across a vast network of computers. It also records all of the transactions. Banks are quickly adopting the principles behind Bitcoin’s blockchain. Joint CFO at Reliance Industries, Srikanth Venkatachari, adds that the presence of blockchain will help in reducing the timeline involved in running trade transactions.

The practical uses for the technology in unlocking the cryptocurrency industry

The cryptocurrency industry is experiencing a booming revolution with hundreds of investors tapping into it. The entry of the technology will bring significant change to business generally with many practical uses. Some of these uses include the ability to handle huge amounts of transactions within a minimum period and within an incredibly large network.

The quick process will mean unlocking liquidity for businesses. The head of global banking and markets at HSBC, Hitendra Dave, states, “The use of blockchain has a transformative impact on trade finance transactions and enables greater transparency and enhanced security in addition to making it simpler and faster.”

Meanwhile, several other banks are on the verge of it supporting the open source system. The banks HSBC, ING, Bangkok Bank, and BNP Paribas are in the frontline of expanding blockchain networks across various industries.

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