HSBC conducts blockchain LC transaction with Vietnam

Home > Business > Finance

print dictionary print

HSBC conducts blockchain LC transaction with Vietnam

HSBC said Monday that its first live blockchain-based letter-of-credit (LC) transaction between Korea and Vietnam was successfully executed.

According to the bank, the transaction, involving a shipment of raw plastic materials from INEOS Styrolution Korea to Vietnam’s Duy Tan Plastics, was conducted through Voltron, HSBC’s blockchain-based platform.

The bank said the blockchain-based transaction was not only faster but cheaper, saving money for both the buyer and the seller. The exchange was completed in 24 hours, while paper-based exchanges would have taken five to 10 days.

The bank said paper reconciliation was removed because all parties were connected to the platform, where updates were made instantaneously. It added that a quick turnaround would “unlock” liquidity.

By Lee Ho-jeong
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)