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UAE’s Abu Dhabi Commercial Bank (ADCB) has partnered with Singapore’s dltledgers blockchain platform for digitizing trade finance using this innovative technology.
The bank has completed its first transaction, moving $6.5 million worth of goods from Canada to Bangladesh for Western Red Spring Canadian Wheat, as per a press release.
“This private network allows ADCB to service corporate consumers in real-time, increasing transparency and building cross-border connectivity,” Krishnakumar Duraiswamy, ADCB’s Group Head of Trade Finance, said.
The latest move makes ADCB the first bank in the UAE to run an end-to-end blockchain trade finance transaction. By using blockchain technology, it offers visibility across the transaction’s entire lifespan with authenticated and consented digitized document at every step.
Meanwhile, dltledgers platform combines both supply chain traceability and the trade finance aspect. It already has more than 400 traders, running 3600 live trades and over one billion USD trade financing performed with more than 30 banks globally, Samir Neji from dltledgers said.
Using dltledgers platform, ADCB would be able to provide corporate clients greater confidentiality, faster turnaround, enhanced fraud prevention, and capability to keep a closer tab on the flow of goods and documentation, the announcement noted.
“Considering that trade finance is widely viewed as the fuel for global commerce, it is easy to see why customer-centric Blockchain platforms like ours is dominating conversations in the trade finance world,” Neji said.
Other parties involved in the pioneering transaction were Bangladesh’s Islami Bank, SGS Surveyor, Richardson International Shipping Canada, Banjo Auto Flour Mill Bangladesh, and Singapore’s large trading house Agrocorp.
In July, First Abu Dhabi Bank and Etisalat Digital also partnered to offer digitized trade finance services via the UAE Trade Connect (UTC) platform, developed together with Avanza Innovations. The new initiative aims to address problems including double financing and invoice fraud and to further develop and extend the solution to other areas of trade.
