India's Tata Steel has executed a blockchain-enabled paperless export order with a major steel-based company in Bangladesh, making this the first such deal executed between an Indian company and counterparty in Bangladesh.
The transaction was facilitated by Standard Chartered India and was conducted on Contour's blockchain trade platform on Wednesday, reports Livemint.
It will enable banks, corporates, and other trade partners across the world to transact with each other.
According to Tata Steel, the seamless transmission of LC and e-presentation of document between the two different banks at both ends via the platform under three hours is a testament to reduced paperwork and time and increased operational efficiency brought about by this solution.
Tata Steel Vice-president (flat products) Rajeev Singhal said, "We are glad and more confident now that we have executed the first multi-bank blockchain-enabled trade. The technology along with the pivoting efforts of Tata Steel provides efficiency and agility in enabling a better customer interface."
The integrated solution using blockchain technology allows all parties involved in the transaction to communicate on a single platform in real-time.
"It aims to reduce processing time by digitising the entire LC process and eliminating the operational inefficiencies as compared to traditional paper-intensive process of LCs. Further, this technology also enhances the safety of transactions. The information can be shared only with other authorised members on the network and is immutable, reducing the risk of data manipulation and fraud while increasing transparency for all parties involved in the transaction," said a press release from Tata Steel.