SABB And HSBC Bank completed the first international business transaction via BLOCKCHAIN ​​platform in Saudi Arabia and Bahrain

The Saudi British (SABB) Bank And HSBC Bank For the first time using BLOCKCHAIN technology in Saudi Arabia and Bahrain to finance international trade, this step places Saudi Arabia and the Kingdom of Bahrain at the forefront of assisting the growth and development of global trade, offering new levels of efficiency, security and transparency for companies seeking to enter new markets.

The deal included shipping the processed aluminum sheets from Aluminum Bahrain (Alba) to Al Taiseer Aluminum Company “TALCO” Has been issued Letter of Credit From Talco Company Through BLOCKCHAIN platform using Korda system From R3.

"There has been a lot of enthusiasm about the commercial benefits of using BLOCKCHAIN ​​technology and I am proud to be the first bank to use this technology to improve how Saudi companies do business internationally. Leading such changes in favor of our customers and the economy", said Deputy Managing Director of SABB Bank 

As the world's leading trade finance bank, HSBC actively supports the adoption of technologies such as BLOCKCHAIN ​​to make global trade faster, safer, and easier. As trade continues to grow in the region, we see tremendous potential for BLOCKCHAIN ​​technology in the GCC region. "Bahrain is reflecting its strength as a rapidly evolving financial and technical ecosystem," said Melika Petley, CEO of HSBC Bank Bahrain.

This transaction also demonstrated the commercial and business viability of BLOCKCHAIN ​​as an alternative to traditional paper-based swaps, improving procedures for the flow of letters of credit via BLOCKCHAIN ​​technology, from acceptance of letter of credit terms, application, issuance, request for amendment and approval, submission of documents, settlement of differences, billing instructions from While all participants are using the BLOCKCHAIN ​​platform

Although there are other digital solutions for commercial letters of credit, their isolated nature leads to what the International Chamber of Commerce calls digital islands, where digital solutions still need to be linked manually. The decentralized nature of BLOCKCHAIN ​​and the R3 Korda system reflect the letters of credit for global trade. It provides fast and improved procedures with complete elimination of paperwork

Korda's R3 system uses BLOCKCHAIN ​​technology to track and track information as it moves between parties and keeps Korda's technology in sync, reducing the need for intermediaries and speeding up transactions, while providing insight into the progress of actions for all parties. Including banks, making trade finance more visible and transparent

"We are happy Because we were the first to try BLOCKCHAIN ​​in this way, we have always been innovative in terms of technology related to our products. So discovering the innovation that has helped us conduct trade more efficiently and effectively with our key overseas partners is a natural progression path and we are delighted that banks such as Saudi British Bank are exploring new ways to reduce disputes arising from international business exchanges for Saudi companies" . Saudi Al - Tayseer Aluminum Company

Alba's CEO said: "that Bahrain is on its way to establish itself as a digital solutions center, especially in the area of ​​financial technologies in the region. We at Alba not only see ourselves as aluminum suppliers, but also want our progress in sales and trade to be recognized more efficiently and effectively. Digital platforms with key partners like Talco".

It should be noted that BLOCKCHAIN ​​is a system that maintains consistent transaction records across multiple networked PCs and through the use of secure decentralized networks BLOCKCHAIN ​​can serve as a corridor that connects business partners globally with shared data in a measurable way that makes the business process faster and more It is a one-step process that helps remove trade difficulties by acting as an intermediary making trade more efficient and easier to access than ever before.