HSBC and ING Bank have successfully executed the first scalable live trade finance transaction using blockchain for Cargill, an international food and agriculture conglomerate.
Last week, a shipment of soybeans was transported from Argentina to Malaysia via Cargill’s Geneva and Singapore subsidiaries. The deal was financed using a Letter of Credit which was completed digitally on R3’s scalable Corda blockchain platform, marking a paradigm shift in the way goods are bought and sold.
The transaction demonstrates that blockchain is a commercially and operationally viable solution for trade digitization.
HSBC’s Global Head of Innovation and Growth, Commercial Banking Vivek Ramachandran, Regional Head of Global Trade and Receivables Finance for Asia-Pacific Ajay Sharma, and ING’s Managing Director, Innovation Wholesale Banking Ivar Wiersma spoke about the groundbreaking transaction.