UAE Universal Tube carries out second blockchain trade transaction
HSBC Bank has successfully executed blockchain based trade transaction for ArcelorMittal Nippon Steel India and UAE Universal Tube for plastic industry. This is the second UAE Universal Tube Blockchain trade transaction carried out by HSBC. The first one was done between UAE Universal Tube an Tata Steel.
The transaction strengthens the company’s commercial and operational viability of the Blockchain. The end-to-end paperless transaction was executed over the Contour platform. Contour, which has been built on blockchain technology facilitates comprehensive digitisation of the end-to-end ‘Letter of Credit’ (LC) transaction, including the e-presentation of trade documents via the interface with essDOCS’ CargoDocs platform.
Contour enables the underlying LC trade transaction to be fully digitised from the LC issuance stage to the final presentation of documents. It also allows transaction parties to transfer, manage and present electronic Bills of Lading (eB/Ls) and supporting documents seamlessly within its platform via the Contour-CargoDocs interface.
In this case, the LC was issued by HSBC UAE for the importer, Universal Tube & Plastic Industries, UAE with HSBC India acting as the advising and negotiating bank for the exporter, AM/NS India.
Dilip Oommen, CEO of AMNS, said that such a deal provides it with a competitive advantage and the steel manufacturer is constantly looking for ways to strengthen its ability to automate and digitalize processes.
Hitendra Dave, CEO of HSBC India, said: “The benefits and transformative effects of this technology are obvious, and we believe it will lead companies to more adoption of their trade finance needs.”
