HSBC-Dubai blockchain partnership to shake up the retail industry
Thu, 20 Jun 2019, 06:21 am UTC
Banking giant HSBC and Landmark Group, which is a company based in Dubai, recently completed a transaction that connected two independently-built blockchain platforms, Arabian Business reports.
The transaction involved a shipment from Bee Dee Industries, a Hong Kong-based firm, to Landmark Group’s retail business Babyshop. HSBC issued a letter of credit (LC) using the Voltron platform, while Landmark Group's initiated ReChainME platform facilitated connectivity with the logistics partners.
The blockchain-based transaction allowed all key supply chain participants to view documents and shipment information in real-time, thereby reducing the total time to complete the transaction by 40 percent. This marks yet another milestone in blockchain adoption in the middle east.
Landmark Group group chief financial officer Rajesh Garg explained how they came about this partnership.
“We saw the promise of blockchain technology and embarked on the journey. This is a huge milestone for us at Landmark Group. Embracing new and emerging technologies like blockchain in our physical and financial supply chain not only aids in improving speed to market efficiency but also reflects our commitment to driving transformation in the retail sector and ultimately creating value for our customers,” Garg said.
As for HSBC, regional head of trade at HSBC Middle East, North Africa and Turkey, Sunil Veetil noted how connecting ReChainME and Voltron will benefit retail in the middle east. It would appear that one of the biggest goals is with the further adoption and development of blockchain in the region.
“Being able to connect two complementary blockchain platforms is a significant milestone in the development of this technology,” he said. “In a world where businesses are increasingly positioning their supply chains across several markets, blockchain platforms will undoubtedly give them a competitive advantage by increasing the velocity of trade without compromising on privacy and security.”
Officially Announced in October 2018, Voltron initially began as a project within the R3 blockchain consortium. By leveraging R3’s Corda, it aims to digitalize the LC process which can significantly lower the processing time and cost. Last month, Voltron completed trials involving the simulation of multiple digital Letter of Credit transactions with more than 50 banks and corporates.
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