Posted by Mumbai: Tata Steel and HSBC have executed a blockchain-enabled, paperless trade transaction. Probably, it’s the first blockchain-enabled transaction in the steel industry globally.
The live trade finance deal involved the export of steel by Tata Steel, India to Universal Tube & Plastic Industries, UAE.
For this transaction, Tata Steel collaborated with blockchain platforms Contour and essDOCS. HSBC UAE issued the Letter of Credit (LC) to Universal Tube & Plastic Industries, UAE (importer) with HSBC India as the advising and negotiating bank for Tata Steel, India (exporter).
This transaction validates the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation. Tata Steel has also signalled its intent to explore similar opportunities in other geographies in future.
“Adoption of this platform is in line with our objective of agility and enabling a faceless yet trustworthy all-time interface to better customer experience. This unique initiative, executed in collaboration with HSBC, demonstrates our continued efforts to lead technology-led disruptions by challenging the status quo and reimagining the global trade set-up,” said Peeyush Gupta, VP – Steel Marketing and Sales, Tata Steel.
“Having pioneered the deployment of Blockchain technology in trade finance, we are focused on enhancing its utilisation across a wider spectrum of trade finance transactions,” said Hitendra Dave, Head – Global Banking and Markets, HSBC India
“We’re delighted to partner with Tata Steel in this landmark transaction for the steel industry. This transaction is a significant step towards the mass commercialisation and adoption of this technology and we look forward to its transformative impact on trade finance,” Dave commented on the partnership between Tata Steel and HSBC.