HSBC has completed the first blockchain or distributed ledger letter of credit (L/C) transaction in the Chinese currency.

The yuan-denominated transaction once more employed the Voltron trade finance platform that has been used in several recent blockchain L/C transactions.

Speedy document processing

The first Renimbi L/C deal involved Hong Kong-based MTC Electronic exporting a shipment of LCD parts and panels to Shenzhen MTC, its parent company based on the Chinese mainland.

Electronic documents were exchanged in 24 hours, compared with the typical five to 10 days for conventional document exchange.

Voltron progress

HSBC participated in the original development of the Voltron platform which it built along with international banks and blockchain firms including Bangkok Bank, BNP Paribas, ING, NatWest, Standard Chartered, CryptoBLK, and R3

The deal marks progress in making blockchain offerings commercially viable.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.