According to a report by the Oman Observer, the Oman Oil and Orpic Group and HSBC Bank Oman SAOG have executed the first transaction involving blockchain. The transaction was for a polypropylene shipment. The transaction was conducted on R3s Corda platform.
R3’s Corda platform uses the blockchain to trade and trade information that travels between the parties, and it also ensures that all stakeholders are in sync, which ultimately reduces the need for reconciliation and speeding up transactions.
HSBC Oman presented a letter of credit on the blockchain, and Oman Oil and Orpic Group served as the beneficiaries of the letter of credit, according to Cointelegraph. The parties were able to complete in 24 hours, rather than the traditional time it would take, which is about 5 to 10 days.
Nizar al Lawati, the CEO of Oman Oil and Orpic Group shared in the Oman Observer report that the group is proud to be among the first in the region to take steps in digitizing trade finance by way of blockchain technology and responding to the 4th Industrial Revolution. He also shared that it would not have been possible without the team’s commitment and customer cooperation and support from the Central Bank of Oman and HSBC Oman.