Abu Dhabi Islamic Bank Completes Trade Finance Distribution Transaction Using Blockchainbr>
Abu Dhabi Islamic Bank (ADIB), an Islamic bank based in the United Arab Emirates (UAE), has successfully completed a secondary market transaction using TradeAssets, a blockchain-powered trade finance e-marketplace.
In a press release, ADIB said that it sold part of its trade finance portfolio to banks in multiple jurisdictions, in what is referred to as “trade finance distribution.” ADIB’s partnership with TradeAssets has allowed it to automate trade finance transactions and successfully conclude transactions with banking counterparts in emerging markets.
“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,” said Haytham Elmaayergi, Global Head of Transaction Banking at ADIB. “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.”
TradeAssets developed its blockchain-powered trade finance platform with an initial focus on secondary market transactions. In 2019, the company launched the platform with 25 banks, most of them in emerging markets such as Bangladesh. Currently, the platform has over 150 members with many of them being from the Middle East.