UAE Tubes and Plastic conglomerate and Tata Steel implement Blockchain enabled trade transaction

News Desk 21 April 2021

1 minute read

It was done over the ‘Contour’ blockchain platform in which HSBC is a founding shareholder. “We are confident this will pave the way for widespread adoption by other clients, counterparties and industries, many of whom we are already in talks with,” said Sunil Veetil, Regional Head of Global Trade & Receivables Finance (GTRF) at HSBC.

The platform allows all parties to have visibility of a trade with no single organisation having control of all the data. This was the first integrated paperless letter of credit and eDocs transaction for a steel export, as well as the first end-to-end paperless trade combining electronic bills of lading and digitised letter of credit in the steel commodity business.

While the transfer of goods between the UAE and India takes a relatively short time, the “administrative paperwork can often impede delivery,” according to a statement by HSBC. “By using blockchain, the reduced transaction time will boost the efficiency of trade between the two countries, which is valued at around $60 billion with the UAE being India’s third largest trading partner.”

Contour Blockchain platform was recently named Leader in Trade for Digitalization at the 2021 GTR Awards.