First blockchain trade transaction completed in Oman
The blockchain transaction between Oman Oil and Orpic Group and HSBC Bank involved the shipment of polypropylene
Oman Oil and Orpic Group and HSBC Bank Oman SAOG have successfully completed the first trade finance transaction on the blockchain in the country.
First reported by the Oman Observer, Oman Oil and Orpic Group, one of the largest oil and gas businesses in Oman, and HSBC Bank completed the transaction which involved the shipment of polypropylene, a thermoplastic polymer used in a wide variety of applications, to Abu Dhabi National Carpet Factory.
The transaction was carried out using R3’s Corda, an open-source blockchain platform. It uses blockchain to track, and trace information as it moves between parties.
The Corda technology is said to keep all stakeholders in sync, reducing the need for reconciliation and speeding up transactions, whilst providing visibility on progress for all.
In the transaction, HSBC Oman advised a fully digitised letter of credit on the blockchain, while Oman Oil and Orpic Group was the beneficiary of the letter of credit.
The application of blockchain technology allowed for the transaction to be completed within 24 hours instead of the usual 5 to 10 days.
Andrew Long, CEO of HSBC Oman, said HSBC actively supports the adoption of technologies such as blockchain to make global trade “simpler, faster, and safer”.
“During the last 71 years in Oman, HSBC has had many ‘firsts’ in the country including being the first bank to offer ATMs and the first online banking platform. Completing the first blockchain trade finance transaction is yet another significant milestone in our journey in Oman as it breaks new ground in pushing forward digital technologies in Oman’s financial sector.”
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