The UAE’s Abu Dhabi Commercial Bank (ADCB) has digitized trade finance for its customers using the Singapore-based dltledgers blockchain platform. This news emerged on 03 September.
Krishnakumar Duraiswamy, ADCB’s Group Head of Trade Finance cited –
“By joining the fastest growing dltledgers Blockchain platform for cross-border trade, the Bank is able to re-imagine trade finance for its customers. This private network allows ADCB to service corporate customers in real time, increasing transparency and building cross-border interconnectivity.”
The dltledgers added that ADCB completed its first live end-to-end trade in blockchain, moving cross-border goods from Canada to Bangladesh. The dltledgers further emphasized that ADCB is the first bank in the UAE to run detailed blockchain trade finance transaction with full document automation. The dltledgers noted that its platform offers corporate customers productivity gain and faster access to cash.
The dltledgers maintained that ADCB’s network provided detailed trade visibility across the entire life cycle of the transaction. The dltledgers further added about the authenticated digitized documents at every step. The blockchain firm noted that the transaction involved several trade partners including Islami Bank (Bangladesh), SGS Surveyor, Richardson International Shipping Canada, Banjo Auto Flour Mill Bangladesh and Agrocorp, a large Singapore-based trading house.
Nitin Jain, Head of Treasury & Capital Markets, Agrocorp International expressed that they could potentially reduce their financing costs by at least 15-20% through dltledgers technology. He opined that they saved significantly on the cost of physically moving documents. Nitin summarized that by moving onto the electronic system, they were also able to access earlier financing from banks.
OneConnect Financial Technology Co. Ltd. has partnered with UBX Philippines Corporation, the wholly-owned fintech subsidiary of Union Bank of the Philippines (UnionBank), to build the country’s first blockchain-enabled platform. OneConnect conveyed that this partnership was mainly to meet the banking needs of micro, small and medium enterprises (MSMEs). OneConnect highlighted that the partnership upholds both UBX and OneConnect’s dedication in accelerating digital transformation in the Philippines.
The dltledgers summarized that as global trades evolve, demands for a networked model would increase. The blockchain firm noted that not only do transactions need to be seamless and safe, but clients are also increasingly looking for innovative solutions. By leveraging the dltledgers platform, ADCB was able to offer its corporate customers gains like greater confidentiality, the ability to keep a closer watch on the flow, among others.