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.
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