FinTechBlockchainCargill blockchain shipping transaction cuts exchange time to 24 hours

Cargill blockchain shipping transaction cuts exchange time to 24 hours

Trade finance takes the next step towards digitisation with focus on speed for bulk shipment using blockchain technology.

A live trade finance transaction for international food and agriculture conglomerate Cargill has been successfully executed by ING and HSBC using R3’s Corda scalable blockchain platform.

By switching to R3’s Corda Blockchain platform, the two companies were able to facilitate a bulk shipment of soybeans from Argentina.

Through a Letter of Credit Transaction, HSBC and ING were able to utilise a single shared application, subsequently reducing the exchange time between buyer and seller.

Conventional exchanges would typically take between 5-10 days however with the new platform – a single shared application eradicates the need for paper.

“Transactions have been made simpler, faster, more transparent and more secure,” said Vivek Ramachandran, HSBC’s head of growth and innovation.

Rani Misra, regional treasurer, APAC, Cargill, commented: “Cargill believes blockchain can help our company nourish the world in a safe, responsible and sustainable way.

Cargill believes blockchain can help our company nourish the world in a safe, responsible and sustainable way”

“Therefore, it’s a key technology we are exploring and using with our own customers and now using for ourselves with the completion of this transfer on Corda.

“We see the exciting potential of extending this technology into other areas of our financial ecosystem,” Misra added.

Not only has this new trade finance unlocked the potential for speed and efficiency but it also represents the first step to utilising this technology across other areas.

Ivar Wiersma, managing director, innovation wholesale banking, ING, said this transaction has incorporated “collaboration with other ecosystems’ stakeholders like regulators, ports customs and logistics providers.”

There are 12 banks already supporting the Corda Application. R3 are looking to expand across the industry and are welcoming engagement from other banks.

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