First Abu Dhabi Bank, Etisalat launch UAE trade finance blockchain
Etisalat Digital announced a new nationwide blockchain trade finance platform called UAE Trade Connect (UTC). It was developed in partnership with First Abu Dhabi Bank (FAB) and Avanza Innovations. So far, eight banks have signed up, but the platform is open to others.
As with most trade finance blockchain initiatives, the aim is to digitize trade in the UAE. The initial scope is to address double financing and invoice fraud.
Blockchains by their nature prevent an invoice being double financed, but only if the entire sector uses that blockchain. In India, Monetago partnered with SWIFT and other organizations to try to ensure invoices don’t get double financed within India. INVIOU has a similar solution, but we’re not aware of a significant deployment as yet.
However, for the UAE’s Trade Connect, invoice fraud is just the first step, and it’s forming a working group to extend the solution. The project won’t just leverage blockchain, but also artificial intelligence, machine learning and robotics.
The banks are First Abu Dhabi Bank, Emirates NBD, Commercial Bank of Dubai, Mashreq, National Bank of Fujairah, RAKBANK, Abu Dhabi Islamic Bank and Commercial Bank International.