HSBC Malaysia
HSBC to Enact First Letter of Credit on a Blockchain in Malaysia
October 16, 2019
HSBC Malaysia
HSBC to Enact First Letter of Credit on a Blockchain in Malaysia
October 16, 2019

Major bank HSBC has announced the successful enactment of a letter of credit (LC) on a blockchain in Malaysia.

On October 14, it has been reported by Fintech News Malaysia, the English language local fintech news outlet that the development notes the transaction involved Simply Packaging, a packaging firm, importing resin from an unspecified Singaporean chemicals company. The issuing bank was HSBC Malaysia and the nominated bank was HSBC Singapore.

As per the report, this is the eleventh blockchain-powered transaction carried out by HSBC and the first such pilot carried by HSBC Malaysia, its Malaysian branch.

Stuart Milne, the CEO of HSBC Malaysia, commented:

“I am very pleased that HSBC has pioneered Malaysia’s first pilot blockchain LC transaction. This showcases our strong commitment and ability to support cross-border trade by Malaysian businesses using cutting-edge technology platforms.”

Stuart Milne
Stuart Milne

HSBC’s involvement with blockchain

According to the article, trade between Malaysia and Singapore was worth over $85 billion last year and the administrative paperwork often delays the delivery of goods traveling across this trade route.

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The exchange and processing of the documents involved in reportedly take five to 10 days on average, while the pilot managed to cut the time to 24 hours.

It has also been reported by Cointelegraph that in September, HSBC has completed the first yuan-denominated letter of a credit transaction on a blockchain using the Voltron trade finance platform.

Source: Cointelegraph


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Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.
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