HSBC and ING Execute Blockchain Trade Finance Transaction

HSBC India and ING Bank Brussels have successfully executed a blockchain-enabled, live trade finance transaction jointly with Reliance Industries and Tricon Energy.

The banks say that this is an industry-first as the blockchain platform is integrated with Bolero’s electronic bill of lading (eBL) platform to issue and manage an eBL. This allowed a digital transfer of the title of goods from the seller to the buyer in the underlying trade. It further enabled the underlying trade to be fully digitised.

The end-to-end transaction was executed on R3’s Corda blockchain platform that is a single shared application, rather than requiring multiple isolated digital systems across various counterparties located around the globe. The letter of credit (LC) was issued by ING Bank for Tricon Energy USA (importer) with HSBC India as the advising and negotiating bank for Reliance Industries, India (exporter).

This transaction validates the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation.