HSBC Bank Is First To Complete A Transaction On EU Bank-led Blockchain Platform

One of the largest UK banks, HSBC successfully completed its first blockchain transaction on we.trade, a digital platform that allows payments between banks and enterprises in Europe. This makes HSBC the first bank to complete such a transaction with we.trade.

A client of the bank, Beeswift, made a deal with a Dutch company, which is a client of Rabobank. The we.trade platform allowed the parties to create and accept an online purchase order, as well as allow the buyer to receive a Bank Payments Obligation (BPU) from Rabobank.

We.trade reduces transaction time to 24 hours instead of 10-12 days, which may be required for a traditional letter of credit required to complete such a transaction. HSBC is one of 12 project shareholders who signed a technology license agreement by January 2019. Other shareholders include Deutsche Bank, Rabobank and Santander.

The platform allows any company to find reliable counterparties and complete transactions online. A company can also use the platform to obtain BPUs. The fact that 12 large European banks are behind the new platform indicates a huge interest in the blockchain, with the potential for further implementation.

Image courtesy of Forbes