Steelmaker Tata Steel NSE 1.44 % along with HSBC, an investment banking company, has executed a blockchain-enabled, paperless trade transaction of export of steel by Tata Steel, India to Universal Tube & Plastic Industries, UAE.
“This unique initiative, executed in collaboration with HSBC, demonstrates our continued efforts to lead technology-led disruptions by challenging the status quo and reimagining the global trade set-up,” the company’s vice-president, marketing and sales said in a media statement.
The end-to-end paperless trade transaction was done by a collaboration pivoted by Tata Steel across the spectrum over the Contour and DOCS platforms.
“The Letter of Credit (LC) was issued by HSBC UAE for Universal Tube & Plastic Industries, UAE (importer) with HSBC India as the advising and negotiating bank for Tata Steel, India (exporter),” the company’s statement said.
This transaction validates the commercial and operational viability of blockchain as an alternative to conventional exchanges for paper-based documentation. Tata Steel has also signalled its intent to explore similar opportunities in other geographies in future.
“We’re delighted to partner with Tata Steel…This transaction is a significant step towards the mass commercialisation and adoption of this technology and we look forward to its transformative impact on trade finance,” said Hitendra Dave, Head-Global Banking & Markets, HSBC India.
(Except for the headline, this story has not been edited by TTE staff and is published from a syndicated feed.)
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