The largest private sector company in India, Reliance Industries, has successfully partnered in a blockchain business transaction in a first for the country.
Reliance, an oil and energy conglomerate looked after by the wealthy Ambani family, has completed a DLT-based transaction from US-based Tricon Energy which is a worldwide chemicals provider. The end-to-end transaction used R3’s Corda blockchain system, according to a press release by Hong Kong Shanghai Banking Corporation bank (HSBC)’s branch in India. Corda is a shared platform for transacting partners that can be used across the globe.
The transaction was facilitated by banking giant ING Bank Brussels and HSBC itself through a letter of credit. The letter was a guarantee of the buyer’s payment for a shipment between the two energy giants. Such a large payment normally takes 7-10 days for processing including export documentation but the blockchain solution had it completed within one day.
The HSBC India press release stated: “This transaction validates the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation.”
The transaction is the latest example of how blockchain technology is being implemented by banks around the world for improving transaction times and increasing transparency. Digitizing trade is the utmost priority for banking circles and the DLT provides a credible means to that end.
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