SINGAPORE, Sept. 3, 2019 /PRNewswire/ -- The UAE's Abu Dhabi
Commercial Bank (ADCB) has digitised trade finance for its
customers using the Singapore-based dltledgers Blockchain
platform. ADCB today 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. This pioneering
transaction involved several trade partners: Islami Bank (Bangladesh), SGS Surveyor, Richardson
International Shipping Canada, Banjo Auto Flour Mill Bangladesh and
Agrocorp, a large Singapore-based
trading house.
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%
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. 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.
Mr Samir Neji from dltledgers said, "We are extremely delighted
to work with ADCB to support their trade finance digitisation
through the dltledgers platform. We have huge demand for our
network from our 50+ traders signed in from UAE and hence our plan
to expand into Middle East and
Africa. We have over 400 global
traders running 3600 live trades and over one billion USD trade financing performed with
more than 30 banks globally. We are very bullish of our partnership
with ADCB and the region. The growth and sustenance of the global
US$8
trillion open account trade finance market are heavily
reliant on the easy availability and robustness of financing
mechanisms. 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. We will continue to grow and expand."
About dltledgers:
dltledgers is a global platform company with Singapore as its HQ. We are a customer centric
platform for cross-border trade
execution. Several regional and global banks have signed up and
operate as network partners in offering trade financing services in
the platform. Apart from counter party assignment in Blockchain, we
network shipping, logistics, ports and other network partners into
a trusted trade network for our customers.
With digitisation and Blockchain, Cross-border trade is being transformed like
never before. dltledgers Blockchain platform leads the pack with
over 400+ global traders, USD 1 billion+ trade executed across 30+
banks and a wider network which is growing on a global scale.
Each step in executing cross-border trade may involve dozens of
documents, contracts, movement of moneys and complex supply-chain.
A lot of aspects of the business is performed across multiple
parties with loose relationships. It's natural that the process is
mired with issues like mistrust, failed promises, and
inefficiencies in several aspects of contracts, finance, goods
mismanagement, and fraud. Our customers benefit from our Blockchain
innovation in 12 core modules and 68 code bases, which resolves and
builds a trusted trade network for private, permissible and secure
trade.
About ADCB:
ADCB Group is a leading UAE banking group that provides a full
suite of award-winning products and services, spanning Consumer
Banking, Wholesale Banking, Treasury & Investments and Property
Management.
On 1 May 2019, ADCB and Union
National Bank merged and the combined entity acquired Al Hilal Bank, which operates as a separate
Islamic banking entity under its own brand within the Group. The
transaction reinforced ADCB's position as the third largest bank in
the UAE, with assets of AED 417 billion based on pro-forma
financial information as at 30 June
2019.
The Group serves over 1 million customers. ADCB Group, which is
60.2% owned by the Government of Abu
Dhabi through the Abu Dhabi Investment Council, trades on
the Abu Dhabi Securities Exchange (ADX) under the ticker of ADCB.
As at 30 June 2019, ADCB's market
capitalisation was AED 58 billion.
Further information on ADCB can be found at adcb.com and
information on the transaction between ADCB, UNB and Al Hilal Bank can be found at
beyondambition.com
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SOURCE dltledgers