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. The cross-border transactions, which were completed with multiple based banks, were made possible through 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. For the past year, ADIB’s collaboration with TradeAssets has enabled it to automate trade finance transactions and conclude transactions successfully with banking counterparts in emerging markets.
Commenting on the milestone, Haytham Elmaayergi, Global Head of Transaction Banking at ADIB, said: “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 Sharia’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.”
ADIB values the importance of incorporating emerging technologies and forming strategic partnerships in a rapidly evolving business climate. This commitment is represented in the bank’s collaboration with TradeAssets, an e-marketplace that complements ADIB’s diversified digital cash, trade and foreign exchange offerings, available to businesses through its flagship ADIB Direct platform.
Aimed at businesses of all sizes, ADIB Direct 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.
TradeAssets which is based in the UAE, is working with a large number of banks in the region.