Even the Middle Eastern sultanate of Oman is not left behind as the world marches on towards a blockchain-based future. According to the Oman Observer, Oman Oil and Orpic Group and HSBC Bank have entered into a major deal.
These parties have carried out the first blockchain-run trade finance transaction in the history of Oman. This is a very big deal as the first party is one of the biggest oil and gas businesses in the country, and of course, HSBC is also one of the biggest banks on the planet. The transaction was the sale of polypropylene to Abu Dhabi National Carpet Factory. It was executed by making use of Corda from R3, it is an open-source blockchain system.
The transaction was comprehensive. In it, the Omani branch of HSBC recommended via a totally digitized letter of credit on the platform. On the other hand, Oman Oil and Orpic Group assumed the role of the beneficiary of the letter of credit.
In doing this and making use of blockchain technology, the parties involved were able to complete the transaction in just one day. This is relatively swift as using other conventional means will take up to almost two weeks.
The chief financial officer at Oman Oil and Orpic Group is Nizar al Lawati. He has stated with a lot of pride that they are more than glad that their company is one of the first ventures in the country in this regard. Their enterprise is now a pioneer in the promotion of digitization of trade finance through the use of blockchain technology.
A finance and strategy commercial value partner at Oman Oil and Orpic Group is Sadiq al Lawati and shares a similar opinion. He said that the blockchain pilot is crucial in the step towards digitization. He also stated that the trip commenced with artificial intelligence and will continue to set new records.
Blockchain Technology Gaining More Acceptance
As it is now, financial institutions across the globe are beginning to see all the incredible advantages that come with this new technology. Hence, it is not a surprise at all that they are now making use of blockchain technology at an increased pace. For many of them, the main essence is to increase their overall efficiency.
Just recently, Archax announced the adoption of Corda to coordinate its post-trade transactions. Archax is a London-based digital securities exchange.
Earlier this year, the second-biggest bank in Oman by market value, BankDhofar, started making use of RippleNet technology for international payments to India. The adoption of this technology allowed the transfers to be done in less than 120 seconds.
Now, it becomes very easy for non-resident Indians in the sultanate to easily get their live payment transfers done without any hitch. Even though Oman is adopting this relatively late when compared with some other nations, that it has adopted it is a good step in the right direction. The future of banking is clearly going to depend a lot on blockchain technology.