Abu Dhabi Commercial Bank (ADCB) has digitised trade finance for its customers using the Singapore-based dltledgers’ platform, completing its first live end-to-end trade in blockchain by moving from Canada to Bangladesh $6.5 million worth of Western Red Spring wheat.
ADCB is the first bank in the United Arab Emirates 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.
“This private network allows ADCB to service corporate customers in real time, increasing transparency and building cross-border interconnectivity,” said Krishnakumar Duraiswamy, ADCB’s group head of trade finance.
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.
Using the dltledgers platform, ADCB is able to offer its 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.
dltledgers founder and CEO Samir Neji said the company plans to expand into the Middle East and Africa considering a huge demand for their network.
“We have over 400 global traders running 3,600 live trades and over $1 billion trade financing performed with more than 30 banks globally,” Neji said. “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.”