ING and HSBC a step closer to paper-free trade finance
ING and HSBC have run their second blockchain pilot using the Voltron platform to make trade finance transactions digital and more efficient.
The deal, for Tricon Energy, is the second blockchain pilot the two banks have run together using the Voltron platform to digitise trade finance documents.
The exchange of documents was completed in one day, compared with the 7 to 10 days a paper-based process takes, and covered a polymers shipment from India to Peru.
Bringing the solution into production will take at least another year, according to Chris Sunderman, blockchain initiative lead for trade finance services at ING.
"We have to involve all banks in the consortium in executing pilots, and upon these pilots we will get feedback from our clients, which is essential for the improvement of the solution, but also to further develop Voltron into a market-fit solution. When that has been achieved, we will have to make it into a scalable solution, which is something different. So it will take some time to get there," Sunderman said.
For more information about the transaction, visit Global Trade Review.
Built on blockchain, Voltron is a platform aimed at making the exchange of trade finance documentation digital and more efficient. It is run by a coalition of banks, building a blockchain-based network for automating trade finance documents such as letters of credit. So far, ING and HSBC are the only banks that have run live tests on Voltron.