UAE’s Abu Dhabi Commercial Bank (ADCB) has digitised trade finance for its customers using the Singapore-based dltledgers Blockchain platform. ADCB reported completion of its first live end-to-end trade in Blockchain, moving cross-border goods for Western Red Spring Canadian Wheat worth USD 6.5m (AED 25m), from Canada to Bangladesh. 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 efficiencies and faster access to cash.
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.”
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.
Nitin Jain, Head of Treasury & Capital Markets, Agrocorp International commented on dltledgers technology, said, “We could potentially reduce our financing costs by at least 15-20 percent through dltledgers technology, saving significantly on the costs of physically moving documents. Moving onto the electronic system, we are also able to access earlier financing from banks as the documentation flow is much closer to real-time.”
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.
[“source=moneycontrol”]