Oman Conducts First Blockchain-Powered Trade Finance Transaction

Asia Blockchain Review
December 3, 2019

The first blockchain-based trade finance transaction has been completed in Oman for the country’s oil & gas industry. R3’s Corda platform was used for the transaction, with HSBC Bank issuing the digitized letter of credit.

The transaction was between Oman Oil and Orpic Group and Abu Dhabi National Carpet Factory for the sale of polypropylene. Using Corda, the blockchain-based transaction took only 24 hours to complete, instead of the usual 5 – 10 days.

Utilizing Blockchain for Journey towards Digitization

The blockchain-based trade finance transaction is a crucial part of Oman Oil and Orpic Group’s plan to digitize its operations. Sadiq al Lawati, finance and strategy commercial value partner at Oman Oil and Orpic Group, says:

“This Blockchain pilot is an important station in our journey towards digitisation, a journey that started with Artificial Intelligence (RPA++) and continues to embrace new disruptive technologies.”

In the transaction, Oman Oil and Orpic Group was the beneficiary of the letter of credit issued on the blockchain platform by HSBC Oman. Corda provided visibility on progress for all stakeholders, helping to boost their confidence in the transaction.

Oman Oil and Orpic Group is one of the first businesses in Oman to use blockchain for the digitization of trade finance.

Financial Firms around the World Welcome Blockchain

Blockchain technology has been increasingly implemented by financial institutions in many countries for better internal processes. In the U.K., London-based digital securities exchange Archax has announced that the company will use Corda to work with its post-trade activities.

BankDhofar, Oman’s second-largest bank by market value, started to use global ledger RippleNet for cross-border payments to India in February this year. With this technology, cross-border transfers via a mobile banking app are completed “in less than 2 minutes.”

Source: cointelegraph.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Improving Grant Management with Blockchain Technology
    The U.S. Treasury Department and the National Science Foundation have developed a blockchain-enabled...

    January 27, 2020

    Dish Network Files Patent for Anti-Piracy System Backed by Blockchain
    Dish Network, a major television provider in the U.S., has submitted a patent application for an "an...

    January 27, 2020

    Concerns Raised over Unclear Definitions of Crypto-Assets in Crypto-Currency Act 2020
    A cryptocurrency bill being drafted in the US Congress has been criticized for its vague definitions...

    January 25, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us