Barclays Executes Letter of Credit Transaction on Private Blockchain
Trade finance is entrenched in paper documents these days, as it had been for decades. Using smart contracts on top of blockchain technology could address most of the market inefficiencies. These are exciting times for blockchain technology. Barclays, a world-renowned bank, and Wave, one of their accelerator graduates, conducted a live test of distributed ledger technology. A Live Letter of Credit transaction was performed and completed.This is a significant validation of blockchain technology. Wave is a company dedicated to bringing distributed ledgers to the financial sector. Ever since....
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Barclays, the UK banking company, teamed up with an Israeli startup to carry out the bank’s first Blockchain-based trade transaction. This allowed Barclays to send a transaction within minutes, both cost effectively and securely, rather than using the traditional transaction process which normally takes hours or days. According to Barclays, the transaction was approximately $100,000 worth of dairy products from an Irish food company, Ornua to the Seychelles Trading Company. Baihas Baghdadi, Barclays' Global Head of Trade and Working Capital, states: "We've proved the reality of this....
HSBC said the transaction over the Contour trade finance blockchain platform slashed the time normally taken to process letters of credit.
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PJSC Siberia Airlines, commonly known under its operative name of S7 airlines has executed the first of its kind service payment using Ethereum blockchain smart-contracts through a letter of credit, with Russia-based Alfa-Bank. The announcement reveals that the agreement took place between the airlines and a counterpart using a letter of credit, through Alfa-Bank. A letter of credit is issued as a bank guarantee that payments will be made to a seller from the buyer. The bank issuing the letter of credit is obligated to cover the amount in the event that a buyer is unable to make the....
After keeping its projects to itself in 2015, 2016 may have been Barclays's year – at least, when it came to blockchain tech. According to industry analysts, there's a strong case the bank is at the forefront of the increasingly large group of incumbents seeking to harness the "technology behind bitcoin" heading into 2017. As noted by Patricia Hines, a senior analyst with Celent's banking practice, a key distinction is that, while other banks may have primarily sought PR pickup, Barclays was able to use its blockchain efforts in 2016 as a competitive differentiator. From....