HSBC used the Contour platform to conduct a blockchain-based transaction between SAIC Motor (a Chinese car manufacturer) and Taajeer Group, Saudi Arabia’s exclusive agent for MG vehicles.
Blockchain technology allows for the creation of new value.It would greatly speed up the process of handling paperwork. HSBC stated that distributed ledger technology could be used to revitalize the trade finance industry by reducing transaction times by 24 hours, as opposed to the current five to ten days.
The following is the announcement:
“The Contour platform enabled end-to-end digitisation of the credit documentation required for Taajeer to import a shipment of cars from SAIC in a process that is up to 10 times faster than using physical documents.”
Chaker Zeraiki, the head of global trade & receivables finance at HSBC UAE, stated:
“Our digitizing at scale means making customers’ lives easier and, with Contour it means we’re cutting costs, reducing risk and speeding up trade. Bringing these benefits to the automotive sector and Saudi Arabia are a measure of our international connectivity and our global leadership in trade banking.”
Contour aims to digitize $53 billion of the global trade finance industry through decentralized technology. It integrates digital networks across fragmented trade routes and ecosystems, creating a blockchain-based trade finance network.
Carl Wegner, Contour’s CEO, pointed out:
“This transaction marks an important milestone in the Middle East’s automotive sector, proving that distributed ledger technology is successfully transforming the trade finance ecosystem.”
The blockchain-powered trade finance transaction is a first of its kind on Saudi Arabian soil, and it is seen as a stepping stone towards the nation’s Vision 2030 initiative of becoming a regional trade hub.
HSBC is a noteworthy facilitator for blockchain-based trade transaction.
Blockchain.News reported that Wave was a partnership between the largest British multinational investment bank, financial services holding company, and Wave to execute a Blockchain-powered trade between China & New Zealand.