Saudi British Bank (SABB) and HSBC have for the first time used blockchain technology to finance an international trade in Saudi Arabia and Bahrain.
The transaction involved the shipment of homogenized aluminium billets from Aluminium Bahrain (ALBA) to Saudi Arabia’s Altaiseer Aluminium Corporation (TALCO), SABB said in a statement. A letter of credit was issued by TALCO on a blockchain based platform using R3’s Corda system, the statement added.
R3’s Corda uses blockchain to track and trace information as it moves between parties. The Corda technology keeps all stakeholders in sync, reducing the need for reconciliation and speeding up transactions, whilst providing visibility on progress for all.
Majed Najm, Deputy Managing Director, Corporate and Institutional Banking, at The Saudi British Bank said: “Blockchain can improve many aspects of international trade, so it’s great to be in a position to pioneer these changes for the good of our customers and the economy.”
Melika Betley, CEO at HSBC Bahrain, said: ”With intraregional trade continuing to grow, we see tremendous potential for blockchain in the GCC.”
(Writing by Gerard Aoun; editing by Seban Scaria)
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© ZAWYA 2019