HSBC has executed the initial Blockchain trade for the Middle Eastern Automobile Sector. The trade was enabled through the Blockchain network Contour between the Chinese automaker SAIC Motor and the official MG vehicle dealership in Saudi Arabia, Taajeer Group.
As per local media, the Contour network permitted the end-to-end digitization of the credit paperwork necessary for the Taajeer group to buy a consignment of automobiles from SAIC, a procedure that was around ten times quicker than utilizing physical papers.
Chaker Zeraiki, the chief of worldwide trade and receivables financing for HSBC UAE, stated that the company’s massive digitization entails making the lifestyles of clients simpler. Digitizing allows Contour to reduce expenses, reduce risk, and accelerate trading. he remarked.
According to HSBC, distributed ledger technology may cut processing times from five to ten days to less than twenty-four hours, therefore facilitating more commerce across markets.
As the information on the network is visible, the platform from Contour makes trades safer. The platform employs decentralized technology to construct digital systems for the rapid flow of information throughout global commerce channels and prevailing fragmented environments.
According to the study, the platform intends to digitize $53 billion in worldwide trade financing.
David Leslie, General Manager of the Trade Finance Business at SABB, described the deal as the foremost of its type in Saudi Arabia, where Vision 2030 calls for increasing digitalization. Leslie stated, “Blockchain may dramatically decrease complexity and expedite business transactions between firms and Saudi Arabian institutions.”
