Abu Dhabi Commercial Bank (ADCB) has digitised trade finance for its customers using the Singapore-based dltledgers Blockchain platform.
ADCB is the first bank in UAE to run the end-to-end Blockchain trade finance transaction with full document automation through the dltledgers platform, offering corporate customers greater confidentiality, the ability to keep a closer tab on the flow of the goods and documentation, faster turnaround, and enhanced fraud prevention.
Earlier this month, the Bank’s first live end-to-end trade in Blockchain was reported in Singapore. The transaction moved goods for Western Red Spring Canadian Wheat worth USD 6.5m (AED 25m) from Canada to Bangladesh. ADCB’s private network provided end-to-end trade visibility across the entire life cycle of the transaction with authenticated and consented digitized documents at every step.
Krishnakumar Duraiswamy, ADCB’s Group Head of Trade Finance said
“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”.
This pioneering transaction involved several trade partners: Islami Bank (Bangladesh), SGS Surveyor, Richardson International Shipping Canada, Banjo Auto Flour Mill Bangladesh and Agrocorp, a large Singapore-based trading house.
The flow mirrors the traditional letter of credit process, involving agreeing the terms, the application, the issuance, the advising, the amendment request and its approval, the document presentation, the discrepancy resolution, and the bill settlement instructions. The efficiencies stem from using a single Blockchain network for all participants, instead of relying on multiple systems.
As global trades intertwine and evolve, demands for a networked and collaborative model will intensify. Not only do transactions need to be seamless and safe, clients are increasingly looking for innovative solutions that save them time and costs.
Featured image credit: ADCB
