Standard Chartered completes its first blockchain-powered financial transaction
In another example that showcases the growing popularity of blockchain as an innovative technology that can change the face of the fintech industry, London-based multinational banking and financial services giant Standard Chartered completed its first blockchain-based cross-border financial transaction, according to a report by The Business Times.
As per the report, the British multinational banking services company used the Distributed Ledger Technology’s platform to complete the an agri-business supply chain transaction on the blockchain in a day which would have usually taken five to seven days under normal conditions.
As of 2017, trade finance transactions were worth at a whopping $9 trillion, and the industry relies heavily on legacy systems and cumbersome paper-based systems, which makes it imperative for companies to explore the range of possibilities provided by blockchain.
The report further goes on to add that the technology was used to generate trade documents for Singapore-based agri-commodities trader Agrocorp International, to get a shipment of chickpeas from Australia to the customer in Bangladesh.
Ujjwal Jain, head of trade for the Singapore transaction banking business, said that the use of blockchain-based platforms “enables the bank to support our clients’ entire supply chain and provide seamless trade financing within a day.”
This is not the first time that Standard Chartered has made its foray into the blockchain arena. Along with BNP Paribas and HSBC, the bank developed and launched a blockchain trade finance platform dubbed eTrade Connect last year.
It’s not that the bank is working on using blockchain only for financial transactions. In October last year, the bank revealed that it was working on a pilot project for bank guarantees that would be driven by R3 Consortium’s Corda blockchain technology.
In June last year, Standard Chartered collaborated with Ant Financial and GCash to promote remittance services. With this latest move, it is amply clear that Standard Chartered wants to expand the blockchain-based supply chain solution to more clients both regionally and globally. The bank is leaving no stone unturned to explore the possibilities provide by the innovation called the blockchain.
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