On Tuesday HSBC announced it has completed the first yuan-denominated blockchain letter of credit (LC) using the Voltron platform.
This LC transaction was for audiovisual company MTC Electronic exporting raw materials from Hong Kong to its Shenzhen-based parent company.
In trade finance, significant challenges include manual paperwork, delayed payments and delayed shipments. Multiple entities in-between increases the chances of fraud. And a lack of a common platform for such transactions leads to miscommunication. Blockchain aims to address many of these issues, but especially manual paperwork and a common platform.
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