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HSBC Bangladesh uses blockchain to import 20,000 tons of fuel oil from Singapore

HSBC Bangladesh uses blockchain to import 20,000 tons of fuel oil from Singapore

The Bangladesh department of worldwide banking agency HSBC has carried out the nation’s first blockchain-based letter of credit score transaction on the Contour DLT platform.

The transaction was used to settle the importation of 20,000 tonnes of gas oil from United Group’s Singapore subsidiary United Mymensingh Energy.

HSBC Bangaladesh’s chief government, Md Mahbub ur Rahman, described the transaction as showcasing the financial institution’s dedication “to supporting cross-border commerce by Bangladeshi companies utilizing cutting-edge know-how platforms.”

“I imagine this can usher in a brand new period of routing worldwide commerce transactions as companies and governments acknowledge transparency, safety and swiftness in performing duties utilizing blockchain know-how.”

World funds service SWIFT estimated that Bangladeshi trades utilizing letters of credit score, or LCs, have been value greater than $34 billion in the course of the first half of 2020. 

By using blockchain know-how, the time taken to course of the transaction was decreased from between 5 and 10 days to lower than 24 hours. United Group’s managing director, Moinuddin Hasan Rashi, stated:

“Gasoline oil LCs are extremely time-sensitive the place each second counts and we imagine this blockchain know-how will assist to handle time effectively and in addition guarantee elevated effectivity and higher price administration.”

Contour is a blockchain platform constructed utilizing R3’s Corda that connects monetary establishments and company entities in a “decentralized commerce finance community.” 

Contour is owned by eight monetary establishments together with HSBC, ING, Citi, Bangkok Financial institution, BNP Paribas, Customary Chartered, SEB and CTBC. The platform’s improvement started in mid-2017, then dubbed “Voltron,” earlier than launching in closed beta the next yr.

Eighty totally different entities spanning 17 nations examined Contour main as much as its industrial beta launch originally of 2020, with the platform exiting beta only one month in the past.

Contour has additionally been used to settle a 176,000 iron ore commerce between Malaysia and China, with the Philippine-based Asian Improvement Financial institution additionally utilizing the platform to execute the primary cross-border blockchain LC transaction between Vietnam and Thailand.

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