Tata Steel has executed a blockchain-enabled paperless export order with a metals major in Bangladesh. This makes it the first such deal executed between an India-based company and a counterparty in Bangladesh assisted by different banks at respective ends, Tata Steel said Wednesday.

This transaction was facilitated by Standard Chartered and was conducted on Contour’s blockchain trade platform, which enables banks, corporates, and other trade partners across the world to transact with each other. Standard Chartered Bank advised and confirmed the letter of credit (LC) favouring Tata Steel basis instructions received over Contour and was also able to present documents to the Buyer’s Bank over the platform. This helped in early resolution of discrepancies and reducing the overall turn-around-time from weeks to days, UNI news agency reported. 

The seamless transmission of LC and e-presentation of documents between the two different banks at both ends via the platform in under three hours is a testament to reduced paperwork and time and increased operational efficiency brought about by this solution.

Rajeev Singhal, Vice President (Flat Products), Tata Steel, said that we have executed the first multi-bank blockchain-enabled trade. The technology along with the pivoting efforts of Tata Steel provides efficiency and agility in enabling a better customer interface.

“Bangladesh is India’s biggest trade partner in South Asia, while India is Bangladesh’s second-largest trade partner globally. We are glad to be a part of this unique transaction involving Tata Steel, India and Bangladesh-based company. We are excited by the potential of blockchain in trade finance and look forward to large-scale adoption of the same soon,” said Gaurav Bhatnagar, Managing Director & Head, Trade & Working Capital, India & South Asia, Standard Chartered Bank.

Earlier this year, Tata Steel executed its first blockchain-enabled trade and this will be its first multi-bank transaction out of India.(SAM)