Riyadh – Mubasher: Saudi British Bank (SABB) and HSBC Bahrain have used blockchain technology to finance international trade, for the first time in Saudi Arabia and Bahrain.
“The move puts Saudi Arabia and Bahrain at the forefront of global trade, introducing new levels of efficiency, security and transparency for corporates’ looking to access new markets,” SABB said in a statement on Wednesday.
The transaction involved the shipment of homogenized aluminium billets from Aluminium Bahrain (Alba) to Saudi Arabia’s Altaiseer Aluminium Corporation (TALCO).
A Letter of Credit (LC) was issued by TALCO on a blockchain-based platform using R3’s Corda system.
“We’re delighted to be the first to trial the use of blockchain in this way. We have always been innovative in terms of technology related to our product so it is a natural progression to explore the innovation that helps us to trade more efficiently with our key overseas partners. We’re delighted banks like SABB are exploring new ways to take the hassle out of international trade for Saudi companies,” said Suliman Al Oufi, TALCO General Manager.