Indian financial services giant Axis Bank issued a financial contract between two domestic businesses by using a government-backed blockchain platform called Secured Logistics Document Exchange (SLDE).
SLDE was developed and released on Jul. 28, 2021, by India’s Ministry of Commerce and Industry to serve as a digital document exchange platform that uses blockchain-based security protocols for data security and authentication.
According to the official announcement, Axis issued a letter of credit, a financial contract that guarantees payment upon conditions, between ArcelorMittal Nippon Steel India and Lalit Pipes & Pipes Ltd. With SLDE, the Indian ministry aims to improve transparency in terms of audits, capital requirements and logistics. Axis Bank president of wholesale banking products Vivek Gupta added:
“This transaction reinforces Axis’ commitment to lead the digitization in Transaction banking space.”
The state-backed blockchain platform also includes a greenhouse gas (GHG) emission calculator that “allows for commodity-wise comparison of GHG emissions and total cost of transportation, including their environmental cost, between movement by road and rail.”