HSBC has completed what it claims to be the first letter of credit (L/C) pilot transaction on a live blockchain in Malaysia.

The transaction involved a Malaysian firm, Simply Packaging, importing resin from a Singaporean company.

L/C participants

The L/C was issued by HSBC's Malaysian operations while HSBC Singapore was the nominee.

Simply Packaging's L/C was issued in just 24 hours while goods in the transaction were delivered within 48 hours.

Malaysian first

This is the first such pilot project for HSBC Malaysia, although globally the banking giant has reportedly executed eleven blockchain-based transactions.

The bank's chief executive officer, Stuart Milne, said the he was " very pleased" that HSBC has pioneered Malaysia's first pilot blockchain L/C transaction.

"This showcases our strong commitment and ability to support cross-border trade by Malaysian businesses using cutting-edge technology platforms," he said.

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