Axis Bank, the Indian financial services giant, has issued a financial contract between two domestic businesses by using a government-backed blockchain platform called Secured Logistics Document Exchange (SLDE).
It has been reported that SLDE was developed and released on July 28, 2021, by India’s Ministry of Commerce and Industry to serve as a digital document exchange platform that uses blockchain-based security protocols for data security and authentication.
However, according to the official announcement, Axis issued a letter of credit, a financial contract that guarantees payment upon conditions, between Arcelor Mittal Nippon Steel India and Lalit Pipes & Pipes Ltd. With SLDE, the Indian ministry aims to improve transparency in terms of audits, capital requirements, and logistics.
Vivek Gupta, the President of Wholesale Banking Products at Axis Bank, said:
“This transaction reinforces Axis’ commitment to lead the digitization in Transaction banking space.”
The report said that the state-backed blockchain platform also includes a greenhouse gas (GHG) emission calculator that “allows for commodity-wise comparison of GHG emissions and total cost of transportation, including their environmental cost, between movement by road and rail.”
Likewise, an image, originally shared by Axis Bank for the occasion, shows the logo of Ethereum (ETH), strengthening the bank’s commitment to blockchain acceptance. Despite the lack of discussions and regulations around cryptocurrencies, the central and state governments in India have taken proactive measures to implement blockchain technology across various business and development sectors.
At the end of last year, the state government of Telangana launched an initiative for early-stage Web 2.0 and Web3 startups and blockchain developers to help build solutions to real-world problems.
Rama Devi Lanka, the Director of Emerging Technology for the Telangana government, highlighted the government’s intent to expedite blockchain implementations across a variety of use cases.
Thus, she added:
“Some of the interesting use cases that the state has already piloted in Blockchain include — T-Chits (chit funds in blockchain), supply chain (seed traceability), e-voting (digital voting platform built using blockchain and AI) and more.”