Banking giant HSBC announced on Monday that it has completed the world’s first cargo trading financial transaction using blockchain technology, the Financial Times (FT) reported on May 14.

It was the first time that society used blockchain for a commercial trade finance settlement. The deal between the HSBC, world’s largest trade finance institution, and Dutch bank ING was completed for Cargill, when cargo of soybeans was transported from Argentina to Malaysia.

HSBC utilised the Corda blockchain platform, which was developed by R3. Dutch bank ING was a counterparty on the deal.

Not only HSBC but also Singapore central bank uses  technology consortium R3 in its effort to launch a digital currency equivalent to the Singaporean dollar.

The success of the deal  means there is promising future for blockchain to take hold in the global trade finance market. Blockchain is expected to improve security, regulation, management increase efficiency and reduce costs.

Vivek Ramachandran, head of innovation and growth for commercial banking at HSBC said: “The next stage is actually encouraging as many participants as possible to sign up to the utility,”

Nevertheless, the widespread adoption of Blockchain has still obstacles for companies and banks in their attempts to introducing this technology.