By Alicia Maher
HSBC, a British-based bank, has completed the first blockchain-powered transaction for the Middle East’s automotive industry. Contour, a blockchain platform, powered the transaction between SAIC Motor, a Chinese car manufacturer, and Taajeer Group.
Contour Blockchain Platform Quickens Transaction Processes By 10X
The automotive industry in the Middle East has conducted its first-ever blockchain transaction. HSBC, a British bank, faceted the payment process conducted on the Contour Network.
Contour Network is a decentralized system that connects corporations and banks, allowing trade finance and paperless trade. Meanwhile, the entities that participated in the transaction are Tajeer Group and SAIC Motor.
SAIC Motor is the largest automaker in China, while Tajeer Group is an MG car dealer in Saudi Arabia. Meanwhile, this is also the first blockchain-powered in Saudi Arabia.
Chaker Zeraiki, HSBC UAE’s Head of Global Trade, stated that;
“Our plan is to make clients’ life simpler. Using Contour will lower risks, decrease costs and increase the speed of transactions. Also bringing this technology to Saudi Arabia shows our global influence and connectivity in trade banking.”
According to HSBC, digitizing the credit paperwork for the trade was ten times faster than utilizing physical documents. The underlying technology powering the Contour Network made this possible.
Furthermore, HSBC, a supporter of CBDCs and blockchain, argued that DLT (distributed ledger technology) could reduce the time of transaction from 10 days to just 24 hours.
Contour Network Makes Transactions Faster And Secure
In addition, the blockchain tech that powers the Contour Network makes transactions more secure. This is because data sharing between users is irrefutable and transparent.
According to HSBC, the DLT will support more transactions and trade in the future. This is due to its improved security and fast transaction time.
The Contour Network was founded in August this year. It is a decentralized system that connects financial institutions and corporations for paperless and trade finance transactions.
Three delivery partners, HSBC, and seven other banks, came together to develop the network. The platform’s main goal is to develop a channel that supports the digitization of trade finance processes.
In 2020, the network’s beta phase was successful. Over 75 corporate firms and 20 international banks took part in the beta testing.
Meanwhile, HSBC’s first blockchain-powered transaction is coming after the bank’s partnership with Core-FX, a blockchain platform. Both entities teamed up to enable bilateral foreign currency transactions.
In 2019, the British bank completed the settlement of foreign exchange deals totaling $250 Billion. It used its blockchain network called “FX Everywhere.”