The high-profile bank HSBC has publicly announced its first successful enactment of a letter of credit (LC) on a Malay-based blockchain.

Reported by Fintech News Malaysia on October 14, the transaction was conducted with the involvement of packaging company Simply Packaging, finalizing foreign resin product from an unidentified Singapore-headquartered firm. HSBC was in charge of issuance, along with the nominated one being HSBC Singapore.

According to the report, this marks the 11th time HSBC finalizing a blockchain-based transaction, and the first official successful attempt of its Malaysian branch. 

“I am very pleased that HSBC has pioneered Malaysia’s first pilot blockchain LC transaction. This showcases our strong commitment and ability to support cross-border trade by Malaysian businesses using cutting-edge technology platforms.” HSBC Malaysia CEO Stuart Milne shared his remarks regarding the news. 

Per the article, the estimated value of trade between Singapore and Malaysia reaches more than $85 billion in 2018, and the related administrative paperwork was the underlying factor that leads to the delays of merchandise delivery process on this trade route.

It usually requires up to 5-10 days to normally to complete the document exchange and processing procedure. The new pilot is expected to bring down this number to 1.