Tata Steel has accomplished a blockchain-enabled paperless export order with Bangladesh’s metal major. This is the first such transaction accomplished between a counterparty in Bangladesh and an India-based firm.
Primarily, Tata Steel, in a global first for the steel industry, had utilized a blockchain platform launched by HSBC to accomplish a trade finance deal with a UAE-based firm in April 2021.
The current transaction was encouraged by Standard Chartered India and was coordinated on Contour’s blockchain trade platform, which allows corporates, banks and other trade partners worldwide to transact with each other.
Standard Chartered Bank confirmed and advised the letter of credit (LC) recommending Tata Steel basis instructions received over Contour. The bank was also able to present documents to the buyer’s bank over the platform. This aids in the early resolution of dissimilarity and decreasing the overall turn-around-time from weeks to days.
Tata Steel believes that this integrated solution utilizing blockchain technology enables all parties included in the deal to communicate on a single platform in real-time.