HSBC: Completes first yuan-denominated letter of credit transaction

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HSBC: Completes first yuan-denominated letter of credit transaction

HSBC: Completes first yuan-denominated letter of credit transaction

  • The transaction involved the cross-border shipment of LCD parts and panels from Hong Kong-based exporter MTC Electronic
  • When it carried out using the Voltron blockchain platform and marked the first such transaction to use yuan
  • The blockchain-based platform allowed the parties to exchange the electronic documents in 24 hours
  • HSBC has been carrying out a number of letter of credit (LC) transactions via Voltron
  • Overall, 1.2 million LCs worth US$750 billion issued into and out of China in 2018
  • Shorter turnaround times mean improved working capital and better control of cash flow