HSBC and Wave Complete its First Blockchain Trade Transaction from New Zealand to China

Words Hannah George

Over the recent years blockchain has grabbed the attention of many governments, business owners, banks and financiers, but not all have began using it in full effect. Today HSBC and Wave complete its first blockchain trade transaction. Read more to find out just how effective it was.

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The first blockchain trade transaction happened between New Zealand and China and the British Multinational Bank HSBC facilitated the transactions on both ends of the trade. The trade consisted of the transportation of milk powder by Fonterra, a co-operative company operating in the international dairy industry. Wave a digital-based courier platform were the providers of the blockchain technology.

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Quicker Process - Less Than 24hrs Process

The end-to-end process proved to be much faster than it would have taken, it would have usually taken a couple of weeks. The transaction of the cryptographic bill of lading, which is an essential document for international trade like a shipment receipt was sent from New Zealand to China in less than 24 hours. The bill of lading is the most essential document in international trade which is sent from the senders to the final destination. It includes important information relating to the ownership of the cargo, customs clearance, and the financing information.

As a result of the coronavirus pandemic there has been a sharp increase of electronic bills of lading and the use of them continue to increase as financiers, carriers and exporters seek to find suitable alternatives because of the movement restrictions. The advantages of digitising trade workflows is that it will enable streamlined supply chain processes and reduced costs.

Hannah George - Online Editor