UAE Trade Connect, which launched in April as a blockchain trade finance solution for banks, has processed AED 10 billion ($2.7bn) in invoices on the platform since its launch. However, the platform doesn’t yet process financing. Instead, the AED 10 billion represents the value of invoices checked for fraud analysis and ensures the customer isn’t trying to finance the invoice more than once.
The initiative was co-created by Etisalat Digital and seven participating banks, with the central bank as an observing member on the steering committee. First Abu Dhabi Bank (FAB) was the bank that initiated the project, and several additional banks are piloting the solution with plenty of potential to expand with 48 banks in the UAE. Current consortium banks are First Abu Dhabi Bank, Emirates NBD, Commercial Bank of Dubai, Mashreq, National Bank of Fujairah, RAKBANK and Commercial Bank International.
Ideally, all the UAE banks should use the solution to be bulletproof. Otherwise, a fraudster can target the banks that don’t. Or finance an invoice with one of the consortium members and do the second financing with a non-member.
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