Banking giant HSBC is seeking South Korean banking partners to deploy a blockchain platform that enables companies to process and settle their invoices for trade efficiently.
The blockchain platform, called Voltron, has been developed by major banks and blockchain firms, including Bangkok Bank, BNP Paribas, CTBC Holding, HSBC, ING, NatWest, SEB, Standard Chartered, Bain, CryptoBLK, and R3. It aims to resolve an issue concerning the long process of paper-based letters of credit exchanged between importers and exporters, and other parties including shipping companies and banks.
“HSBC is looking to commercially launch the Voltron platform, which is in a pilot stage, in the near future as the bank expands its alliances with other banks and tech companies,” said Joshua Kroeker, HSBC’s innovation director on blockchain.
According to Kroeker, filing and processing trading papers normally takes five to ten days, or as long as 30 days. He said that the platform can help reduce the time to 24 hours by allowing multiple parties to see the entire process and data at the same time.
“The biggest impact would be time. Time and transparency will help companies better manage their cash flow and working capital,” Kroeker said. “I am here this week to reach out to Korean banks to collaborate on this blockchain platform for letters of credit. HSBC is seeking to establish ties with banks that will be committed to building a successful platform and providing useful and easy applications by sharing costs.”
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