HSBC Takes the Lead in Blockchain Trade Financing with we.trade

HSBC: The Trailblazer in Blockchain Trade

In a groundbreaking move, HSBC has emerged as the first bank to successfully execute a financing transaction on the innovative European blockchain trade platform, we.trade. This milestone marks a significant leap forward in utilizing blockchain technology for trade finance, moving us closer to a future where transactions are swift, secure, and easy!

What is we.trade?

Launched back in 2017, we.trade operates out of Dublin and is built on Hyperledger Fabric. This platform is designed specifically for small and medium-sized enterprises (SMEs) in Europe, enabling them to manage, track, and secure open account trade transactions. The platform aims to simplify three crucial aspects of SME trading:

• Access to trusted partners: where SMEs can connect for direct online transactions.
• Bank payment undertaking: acting as the online equivalent of a letter of credit.
• Financing requests: making financing more accessible.

Beeswift’s Pioneering Transaction

The recent transaction involved Beeswift, a Midlands-based manufacturer of protective gear, selling their products to a Dutch firm backed by Rabobank. This significant step was completed within the second round of we.trade’s pilot tests, which kicked off in June 2019. Talk about speed – this is the equivalent of a bank transaction wearing roller skates!

Major Backers and Collaborations

We.trade is not just a lone wolf; it is supported by a coalition of 12 global banking giants, including names like Deutsche Bank, CaixaBank, and Santander, with all partners inking licensing agreements in January 2019. This collaboration indicates a robust trust in the blockchain’s promise for trade finance.

HSBC’s Broader Blockchain Ventures

HSBC is not stopping at we.trade; they are also exploring the waters of blockchain through the Corda-powered trade project, Voltron. They reported that the implementation of Voltron cut down transaction times by a staggering 40%. It’s clear that HSBC is keen on mastering the art of faster and more efficient banking!

The Future Looks Bright

With HSBC leading the charge in blockchain trade finance, it raises exciting possibilities for the future of banking and trade. As more banks join in on this technological revolution, we could see a significant transformation in how businesses transact globally. Buckle up, folks; the future of trade transactions is here, and it’s on blockchain!