The biggest private sector firm in India, Reliance Industries, has just been awarded for participating in its first blockchain-powered financial transaction. Reliance Industries and Tricon Energy, a United States based company, entered into a trade finance transaction which has just been completed on the blockchain. The transaction was an end-to-end live transaction that was done over R3’s blockchain. This is according to a press release posted on HSBC India. R3’s Corda blockchain, according to the press release, is a single shared application that doesn’t require multiple isolated systems to run across other parties around the world.
Along with ING Bank, HSBC facilitated a Letter of Credit of the shipment between Reliance Industries and Tricon Energy. A Letter of Credit is a guaranteed of payments made by the buyer. Typically, the timeline for processing these export documentation is 7 to 10 days. With blockchain technology, however, it was reduced to hours within a day. This was rather impressive.
Part of the announcement was as follows:
“The completion of this transaction confirms the operational and commercial viability of blockchain technology as compared to traditional paper-based documentation process”.
The Letter of Credit was specifically issued to Tricon Energy by ING Bank. HSBC acted as the negotiating bank for Reliance Industries. Noting the disruptive impact of blockchain technology, Hitendra Dave, the head of global markets and banking said:
“Using blockchain is a major step in trade digitization. The system is efficient, cost efficient and last. This offers businesses liquidity that most traditional systems lack”
About Reliance and Tricon
With headquarters in Mumbai, Reliance Industries is a conglomerate holding company that owns several businesses across various sectors from natural resources, energy, textiles, petrochemicals, telecommunications to retail. It is the second largest company in India and the largest publicly traded company per market capitalization. Tricon is a leading firm in the petrochemical derivatives and global trade distribution market. They internationally market polymer intermediates and industrial chemicals. Both companies are heavyweights and their recognition of blockchain technology is going to have a Ripple effect on the industry.