Lloyds Bank has completed what it claims is the first fully digital cross-border trade transaction between the UK and China, processing all documentation for retailer Matalan and Chinese exporter Yatex in under 24 hours.
The transaction, completed on Tuesday, used a digital bill of exchange alongside supporting documents powered by blockchain verification technology from Swedish fintech Enigio, and executed through an interoperable digital channel between Enigio and Singapore-based platform TradeGo.
This corridor allows users to transfer documents like bills of lading, warehouse receipts, and invoices electronically. In this case, the transaction included a fully digital bill of exchange.
Jon Boran, head of future trade products at Lloyds, said the ability to transfer electronic trade documents between different solutions “marks a new era in trade finance”.
For Matalan, the transaction represents both cost savings and environmental benefits. Susan Ashworth, senior trade finance specialist at the retailer, said the digital process “streamlines processes, cuts transaction times, reduces carbon emissions and lowers costs”.
“This isn’t a pilot,” said Alex Waites, executive director at Enigio. “It’s a live transaction executed under real commercial conditions, with real goods moving and real payments expected.”
Matalan initiated the transaction, after which Lloyds drafted the digital bill of exchange according to pre-agreed instructions from a Chinese bank. The digital document was then shared with the Chinese bank and Yatex, where the exporter electronically signed and submitted collection instructions.
Interoperability between different digital platforms addresses one of the key challenges in trade digitisation: the need for all parties in a transaction to use the same system.
