HSBC is seeking local South Korean banking partners as it prepares to commercially launch the blockchain-based Voltron invoice processing and settlement platform, The Korea Times reported today. Voltron is currently in the pilot stage as HSBC works to broaden its collaborative alliance to include additional banks and technology firms.
The Voltron platform was initially launched last fall by the R3 blockchain consortium and eight banks – HSBC, Bangkok Bank, BNP Paribas, CTBC Holding, ING, NatWest, SEB and Standard Chartered. The project was created to address efficiency issues for companies relying on paper-based systems for letters of credit.
The current paper system requires paper-based filing and processing that can take anywhere from five to thirty days. Voltron is designed to reduce that processing and settlement time to 24 hours by providing every entity involved in the process the ability to access real-time data.
HSBC innovation director on blockchain Joshua Kroeker told Seoul reporters:
"The biggest impact would be time. Time and transparency will help companies better manage their cash flow and working capital.
I am here this week to reach out to Korean banks to collaborate on this blockchain platform for letters of credit."