HSBC has successfully used blockchain to ship soybeans for US giant Cargill in a reported ‘first’ for the industry.
As multiple news outlets report, HSBC, which is the world’s largest trade finance institution, completed a letter of credit for food and agricultural giant Cargill, the US’ largest private company in terms of revenue.
The success of the trial transaction means there is potential for blockchain to take hold in the global trade finance market, which is reportedly worth $9 tln, FT reports.
“We don’t envisage the platform as anything other than a utility,” the FT quotes Vivek Ramachandran, head of innovation and growth for commercial banking at HSBC as saying in a statement.
That “utility” could however ultimately involve some of the world’s largest corporations looking to save on processing costs and improve security over paper-based deals.