Working as the third-largest private sector banking entity in India, Axis Bank has successfully processed the industry-first blockchain transaction on Secured Logistics Document Exchange (SLDE) ecosystem. The highly-anticipated Domestic Trade Transaction was executed with Arcelor Mittal Nippon Steel India (AM/NS India) and Lalit Pipes & Pipes Ltd. (LPPL) on SLDE’s government-supported decentralized exchange platform. With this achievement, Axis Bank has managed to place itself way ahead of its competitors in the adoption of blockchain technology.
According to the official report, the trade involved the process of Letter of Credit advising and digital representation of essential trade documents like invoices, transport papers, etc. The Axis Bank team stated that the blockchain interface offers a smooth trading experience to all the involved parties by enriching them with a transparent working channel. The participants get easy access to all the transactions executed on the network along with the documents related to the trade. This helps to enhance the level of working capital management within the entity. The use of the SLDE portal aids in removing the limitations of paper-based transactions such as low transparency, slow speed, and lack of audit trail.
The President and Chief of Wholesale Banking Products at Axis Bank, Mr. Vivek Gupta stated that the transaction supports Axis’ goal to pave the way, as a leader, for digitization across the Transaction banking sector. The bank has been actively working for the growth of blockchain technology. The team has collaborated with several top-tier blockchain firms and projects to develop the decentralized ecosystem. A similar reaction was given by the Deputy CFO of Arcelor Mittal Nippon Steel India (AM/NS India), Mr. Amit Harlalka. The chief said that his team is constantly working to integrate new improvements for enhancing the function and delivery of the core supply chain network. The transaction with Axis Bank and SLDE platform is likely to ensure better efficiency, a secured audit trail, and a sustainable transaction system.
The Jt. MD & CFO of Lalit Pipes & Pipes Ltd., Mr. Zoher Diler conveyed that with this transaction the firm has made its first step towards a better working system. The SLDE network will help to reduce the carbon impact while also providing transparency and sustainability towards the internal and external stakeholders of the company. The chief is elated to join Axis Bank for the initiative that has set a trend for other companies to follow.
The constant growth in popularity of blockchain technology and cryptocurrencies across the world has triggered a similar fashion in the Indian subcontinent as well. Today, we can find Indian firms and investors flocking towards these new-age financial tools that are shaping the future of the payment industry. The expansion of blockchain technology into banking channels is likely to revolutionize the sector with greater transparency, cost-efficiency, and scalability for the work channels.