HSBC used the Contour platform to help SAIC Motor, a Chinese car company, and Taajeer Group, the exclusive agent for MG cars in Saudi Arabia, execute a blockchain-based trade finance deal.
The Contour platform was particularly used to speed up paperwork processing significantly. According to HSBC, using distributed ledger technology could transform the trade finance industry by reducing the time required to complete a transaction from 5 to 10 days to less than 24 hours.
According to the announcement:
“The Contour platform enabled end-to-end digitization 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.”
HSBC UAE’s head of global trade and receivables finance stated,
“Our digitizing at scale means making customers’ lives easier and, with Contour it means we’re cutting costs, reducing danger, and speeding up trade. Bringing these advantages to the automotive sector and Saudi Arabia is a measure of our international connectivity and our global leadership in trade banking. ”
Contour intends to use decentralized technology to modernize the $53 billion global trade finance business by combining digital networks across currently fragmented ecosystems and trade channels into a blockchain tech trade finance network.
Carl Wegner, CEO of Contour, stated:
“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 the first of its kind on Saudi Arabian soil, and it is regarded as an important step toward the country’s Vision 2030 goal of becoming a regional trading powerhouse.
HSBC has emerged as a significant facilitator of blockchain-based commercial transactions.
According to blockchain.news, HSBC, the largest British international financing bank and financial services holding company, collaborated with Wave to execute a blockchain-powered trade between China and New Zealand.
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