Businesses in Abu Dhabi, the capital of the United Arab Emirates’, or UAE, are increasingly embracing blockchain technology as local regulators move towards adopting inclusive legislation regarding crypto assets.
Though Abu Dhabi Global Market, or ADGM, announced its plan to allow crypto asset trading in 2018, the UAE capital has taken a cautious approach to rolling out permissive regulations.
Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has become the first Islamic bank to successfully execute trade finance distribution transactions using Blockchain technology, it said.
The cross-border transactions, which were completed with multiple based banks, were made possible through ADIB’s partnership with TradeAssets, a trade finance e-marketplace powered by Blockchain technology to help digitize the traditional processes of origination and distribution of trade assets.
For the past year, ADIB’s collaboration with TradeAssets has enabled it to automate trade finance transactions and conclude transactions successfully with banking counterparts in emerging markets.
Commenting on the milestone, Haytham Elmaayergi, Global Head of Transaction Banking at ADIB, said: “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. 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.”
ADIB values the importance of incorporating emerging technologies and forming strategic partnerships in a rapidly evolving business climate. This commitment is represented in the bank’s collaboration with TradeAssets, an e-marketplace that complements ADIB’s diversified digital cash, trade and foreign exchange offerings, available to businesses through its flagship ADIB Direct platform.
Aimed at businesses of all sizes, ADIB Direct improves companies’ ability to manage their finances locally and internationally. These features include customisable dashboards, cashflow forecasting and online trade issuance and financing which are accessible across all devices including a mobile app, said the bank.
ADGM, Abu Dhabi’s top international finance center and free economic zone, is currently slated to launch regulated digital asset trading before Q3 2020. In 2019, the Financial Services Regulatory Authority issued in-principle approvals to several companies preparing to operate crypto asset exchanges.
Speaking to Cointelegraph, Leon Smith, the chief executive of DEX — a crypto exchange that received in-principle approval from Abu Dhabi’s financial regulator, described the ADGM’s decision to launch regulated crypto trading as “a ground-breaking step for the region.”
“Everyone involved at ADGM is to be applauded for their efforts in making this happen,” he stated, adding: “This is very much about transforming ADGM into a global financial hub and part of the wider Abu Dhabi narrative.”
Source Trade Arabia