Oman Initiates First Blockchain Transaction on Trade Finance
November 24, 2019 2:30 pm
Oman Oil and Orpic Group and HSBC Bank Oman SAOG have successfully initiated the first trade finance transaction on the blockchain in the country using R3’s Corda platform. According to the report from the Oman Observer stated that Oman Oil and Orpic Group and HSBC Bank executed the country’s first blockchain-based trade finance transaction. A sale of polypropylene to Abu Dhabi National Carpet Factory. The transaction was carried out using R3’s Corda, an open-source blockchain platform.
HSBC Oman advised a fully digitized letter of credit on the blockchain, while Oman Oil and Orpic Group was the beneficiary of the letter of credit. The application using the blockchain technology allowed the parties to complete the transaction within 24 hours instead of the usual 5 to 10 days.
Nizar al Lawati, a chief financial officer at Oman Oil and Orpic Group, stated that the firm is proud to be one of the first businesses in the country to promote the digitization of trade finance through blockchain.
Sadiq al Lawati, finance and strategy commercial value partner at Oman Oil and Orpic Group, said:
“This Blockchain pilot is an important station in our journey towards digitization, a journey that started with Artificial Intelligence (RPA++) and continues to embrace new disruptive technologies.”
Dr. Tariq Taha, CIO at BankDhofar, told:
“With this, we can provide instant, frictionless and secure cross-border money transfers within seconds, with end-to-end visibility over the journey of the payment.”