Worldwide Islamic Commerce Finance Company (ITFC), a Jeddah primarily based group, has partnered with the Bangladesh-based Metropolis Financial institution to execute the world’s first Shariah-compliant cross-border blockchain transaction. The Letter of Credit score (LC) transaction was financed by ITFC’s Murabaha Commerce Finance line.
In response to the official press launch, the LC was issued on behalf of a Bangladeshi exporter Debonair group to import textile-related equipment from Attire Hyperlink, a buying and selling firm primarily based in Hong Kong. Contour, a community construct by R3’s Corda blockchain know-how, executed the transaction.
Commenting on the current announcement, Sheikh Mohammad Maroof, Head of Wholesale Banking, Commerce Providers, SME-Small, and Micro Finance at Metropolis Financial institution, stated: “Metropolis Financial institution is the main digital financial institution in Bangladesh and is dedicated to utilizing know-how to supply an environment friendly and satisfying expertise to our purchasers. This transaction will pave the way in which for improved digital commerce by way of blockchain know-how. I want to thank all associated events who had been a part of this pioneering transaction.”
Blockchain Know-how and Commerce
The usage of blockchain know-how in cross-border commerce has elevated just lately. In December 2020, HSBC partnered with Contour to digitize worldwide commerce. A number of monetary organizations the world over are collaborating with completely different blockchain know-how suppliers to check the effectivity of the talked about know-how in worldwide commerce.
“We’re lastly seeing the commerce finance business embrace digitization and reap the advantages of improved connectivity and effectivity in LC presentation. As we proceed constructing the world’s trusted community for international commerce, we’re eager to make sure this rising ecosystem of banks, corporates, and know-how suppliers stay inclusive and accessible for all. This being the primary sharia appropriate transaction accomplished on our community marks an vital milestone towards our ongoing aim,” Carl Wegner, CEO of Contour talked about within the official press launch.
In November 2020, ALT Coin Hypothesis reported an announcement by the Australian and Singaporean commerce authorities to simplify cross-border commerce by way of the usage of blockchain know-how between the 2 nations.