TRY FOR FREE

BofAML, HSBC, IDA Singapore Build Pioneering Blockchain Trade Finance App

Consortium proves Letter of Credit transactions can be executed on Blockchain

Digital innovation heralds trade efficiency benefits for banks and companies

August 10, 2016: Bank of America Merrill Lynch, HSBC and the Infocomm Development Authority of Singapore (IDA) announced today that they have jointly developed a prototype solution built on blockchain technology that could change the way businesses around the world trade with each other. The consortium utilized the Linux Foundation open-source Hyperledger Project blockchain fabric; its development was supported by IBM Research and IBM Global Business Services.

The application mirrors a paper-intensive Letter of Credit (LC) transaction by sharing information between exporters, importers and their respective banks on a private distributed ledger. This then enables them to execute a trade deal automatically through a series of digital smart contracts.

The proof of concept shows potential to streamline the manual processing of import/export documentation, improve security by reducing errors, increase convenience for all parties through mobi ...

To continue reading, sign up for MEDICI Inner Circle and get free access for 7 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.

RECOMMENDED