17.01.2021

Oman Sees First Trade Finance Transaction on Blockchain

As news publication the Oman Observer reported on Nov. 23, Oman Oil and Orpic Group – one of the largest oil and gas businesses in Oman – and HSBC Bank executed the country’s first blockchain-based trade finance transaction: a sale of polypropylene to Abu Dhabi National Carpet Factory. The transaction was carried out using R3’s Corda, an open-source blockchain platform.

Oman Oil and 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.

Fully digitized letter of credit

In the transaction, HSBC Oman advised a fully digitised letter of credit on the blockchain, while Oman Oil and Orpic Group was the beneficiary of the letter of credit. The application of blockchain technology allowed the parties to complete the transaction within 24 hours instead of the usual 5 to 10 days.

Nizar al Lawati, chief financial officer at Oman Oil and Orpic Group, 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.”

Finance sector adopting blockchain tech

Financial institutions around the world have been gradually adopting blockchain technology in a bid to improve their internal processes. Last month, Archax, a London-based digital securities exchange, revealed it will use Corda to manage post-trade activities.

In February, Oman’s second-largest bank by market value, BankDhofar, began using RippleNet technology for cross-border payments to India. The technology allowed the bank to provide cross-border transfers via a mobile banking application “in less than 2 minutes,” thus allowing non-resident Indians living in Oman to conduct real-time payment transfers.

Oil and Gas Giant Pilots New Blockchain Platform From Modex

Blockchain startup Modex announced the launch of its blockchain-based database platform for simplified blockchain deployment, which will be piloted by Dietsmann, a major oil and gas firm.

Simplifying blockchain adoption

On Sept. 19, Modex announced the release of its latest product, the Modex Blockchain Database platform (Modex BCDB) which simplifies the way companies can deploy blockchain technology projects.

According to the announcement, Modex BCDB enables companies to start blockchain projects in just a few hours, instead of days or even months. Mihai Ivascu, CEO and founder of Modex said:

“With the launch of Modex BCDB, we’re excited to usher in a new era of enterprise blockchain adoption. We’ve developed Modex BCDB specifically with enterprise needs in mind in order to counteract the high barriers to adoption that have typically kept businesses on the sidelines.”

In an interview with Economica, a Romanian local newspaper, Ivascu said that he was having several discussions with the Romanian Bank of Commerce (BCR). At this stage, the BCR is not yet using Modex’s solutions.

Dietsmann

Oil and gas giant Dietsmann, which was founded in 1977 in the Netherlands, is one of the first partners to bring Modex BCDB to its industries. The firm specializing in maintaining the production facilities of other companies.

Peter Kutemann, president and founder of Dietsmann said that blockchain will significantly benefit the company and open new ways of collaborating with its main clients and suppliers, adding:

“Modex Blockchain Database infrastructure allows Dietsmann to be up and running on a private blockchain infrastructure at low cost in a matter of days, with high efficiency and minimal effort from our technical team.”

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