Oman Oil, Orpic Group and HSBC Bank Oman SAOG have conducted the first trade finance transaction on the blockchain in the country using R3’s Corda platform.
On Nov. 23, Oman Observer reported that Oman Oil and Orpic Group and HSBC Bank executed the country’s first blockchain-based trade finance transaction through a sale of polypropylene to Abu Dhabi National Carpet Factory.
Fully Digitized Letter of Credit
HSBC Oman advised a fully digitized letter of credit on the blockchain, while Oman Oil and Orpic Group was the beneficiary of the letter of credit in the transaction.
The parties were able to complete the transaction within 24 hours instead of the usual 5 to 10 days using blockchain technology. R3’s Corda, an open-source blockchain platform was used to carry out the transaction.
Nizar al Lawati, a chief financial officer at Oman Oil and Orpic Group, said the said that the company is proud to be one of the first businesses in the country to promote the digitization of trade finance through blockchain.
Sadiq al Lawati, finance and strategy commercial value partner at Oman Oil and Orpic Group, said:
“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.”
Source: Oman Observer | Cointelegraph | Image: The Cryptonomist