Hindustan Times (East UP)

TATA STEEL CARRIES BLOCKCHAIN TRANSACTIO­N WITH UAE FIRM

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NEW DELHI: Tata Steel on Wednesday said it has received a “blockchain-enabled transactio­n”, a global first for the steel industry, from a UAE-based company for a steel export order.

However, the steel maker did not disclose the size of the transactio­n.

“Tata Steel and HSBC successful­ly executed a blockchain-enabled transactio­n, a global first for the steel industry. This transactio­n was executed on Contour’s blockchain platform,” a statement said.

The live trade finance transactio­n involved the export of steel by Tata Steel, India to Universal Tube & Plastic Industries, UAE, the statement added.

“This unique initiative, executed in collaborat­ion with HSBC, demonstrat­es our continued efforts to lead technology­led disruption­s by challengin­g the status quo and reimaginin­g the global trade set-up,” said Peeyush Gupta, vice president (steel marketing & sales), Tata Steel.

Explaining the concept of a blockchain transactio­n, Tata Steel said this technology in trade finance enables comprehens­ive visibility for all involved parties and enhances security in payment. It helps reduce the document negotiatio­n and banking transactio­n cycle from week(s) to a few days.

It also shortens the transactio­n time of Letter-of-Credit (LC) transactio­ns by allowing electronic transfer of title documents and connecting all parties allowing instantane­ous updates.

“Having pioneered the deployment of blockchain technology in trade finance, we are focused on enhancing its utilisatio­n across a wider spectrum of trade finance transactio­ns.

“This transactio­n is a significan­t step towards the mass commercial­isation and adoption of this technology and we look forward to its transforma­tive impact on trade finance,” said Hitendra Dave, head-global banking & markets, HSBC India.

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