International bank HSBC made history when it became the first bank to finish a financing contract on we.trade, a blockchain-powered trading platform based in Europe.
Report from GTR Magazine
According to a recent report by the Globe Trade Review (GTR) magazine, the banking giant recently bankrolled a transaction on we.trade within the second wave of pilot programs that commenced in June.
The economics journal revealed that the transaction concerns HSBC client Beeswift, a producer of protective gear, and their deal with a Rabobank-supported Dutch company.
We.trade develops and supplies a Hyperledger Fabric-powered tool for administering, tracking and safeguarding open account trading transactions between small and medium-sized enterprises (SMEs) in the European region.
The Dublin-based platform aims to expedite three key steps in SME trade – request for financing, providing access to reliable parties for direct online dealings, and bank payment undertaking (BPU). The latter is the online version of a letter of credit (LC).
The design and development of we.trade have been ongoing since 2017. It was incorporated as a separate legal body back in April 2018.
Support from 12 Shareholders
We.trade is said to currently have the support of 12 shareholders – CaixaBank, Deutsche Bank, the Erste Group, HSBC, KBC, Natixis, Nordea, Santander, Societe Generaele, Rabobank, Unicredit, and UBS. The GTR site reported that all these banks had signed agreements to utilize the blockchain platform this year.
The trading platform is just the latest blockchain initiative associated with finance that HSBC has adopted. There have been previous reports indicating that the multinational banking titan is also steering the Corda-backed blockchain trade program Voltron.
HSBC had announced that implementing the Voltron chain lowers transaction times by as much as 40%.