Copy link
Increase text size
Decrease text size
Link copied

SABB, HSBC execute blockchain-based trade transaction between Saudi Arabia and Bahrain

Image: SABB

Wed, 20 Nov 2019, 07:17 am UTC

The Saudi British Bank (SABB) and HSBC have announced that they have used blockchain technology for financing an international trade transaction between Saudi Arabia and Bahrain.

According to a press release, the transaction involved the shipment of homogenized aluminium billets from Aluminium Bahrain B.S.C. (Alba) to Saudi Arabia’s Altaiseer Aluminium Corporation (TALCO).TALCO issued a Letter of Credit (LC) on a blockchain-based platform using R3’s Corda system.

SABB said that this marks the first time that blockchain technology was used in Saudi Arabia and Bahrain to finance international trade. The move is expected to bring “new levels of efficiency, security and transparency for corporate’s looking to access new markets.”

“There’s been a lot of excitement about the commercial benefits of blockchain, so I’m proud we’re first to use it to improve how Saudi corporates trade internationally. 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,” Majed Najm, Deputy Managing Director, Corporate and Institutional Banking, SABB, said.

The transaction proved the commercial and operational viability of blockchain as an alternative to the existing process of exchanging of paper-based documentation. The blockchain LC flow replicated the traditional process – right from agreeing to LC terms and issuance to discrepancy resolution and bill settlement instructions – with all participants using a single blockchain platform.

R3’s Corda platform enables to track and trace information as it moves between parties. By keeping all stakeholders in sync, it reduces the need for reconciliation and speeding up transactions, whilst providing visibility on progress for all. This, in turn, boosts confidence for all parties involved.

In September 2018, SABB became the first bank in Saudi Arabia to join the global blockchain consortium led by enterprise software firm R3. Earlier this year, it launched a Ripple-powered instant cross-border transfer service.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,812.19 (-5.78%)
  • Ethereum (ETH) $229.31 (-8.31%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $319.44 (-8.82%)
  • Bitcoin SV (BSV) $226.98 (-12.41%)
  • Bitcoin (BTC) $8,812.19 (-5.78%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft