UAE-based Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has become the first Islamic bank to successfully execute trade finance distribution transactions using blockchain technology, according to market sources.
The cross-border transactions were enabled by ADIB’s partnership with TradeAssets, a trade finance e-marketplace powered by Blockchain technology to help digitize the traditional processes of origination and distribution of trade assets
ADIB successfully completed a trade finance distribution transaction in partnership with TradeAssets, a blockchain-based trade finance e-market.
ADIB and TradeAssets have been collaborating for more than a year and enabled the bank to automate trade finance transactions and conclude transactions with banking counterparts in emerging markets.
“The completion of the first trade distribution transaction using Blockchain by an Islamic bank shows that ADIB is at the cutting-edge of global transaction banking. As the only Islamic bank providing end-to-end Shari’a-compliant trade financing through digital channels, ADIB is committed to expanding its digital footprint in trade financing and distribution, enhancing the efficiency and productivity of businesses across the region and globally,” Haytham Elmaayergi, Global Head of Transaction Banking at ADIB, said.
ADIB launched ADIB Direct eFX, a platform that allows its clients to secure online foreign exchange rates for international transfers and payment, in March this year.
The bank said in a statement that the platform improves companies’ ability to manage their finances locally and internationally. These features include customisable dashboards, cashflow forecasting and online trade issuance and financing which are accessible across all devices including a mobile app.