Latin American Bank Signs Deal for Using Blockchain-Based RFQ Auction Platform
Banco Latinoamericano de Comercio Exterior (Bladex), a bank for Latin American and Caribbean nations, said on Monday that it has signed a collaboration deal with Fintech Innovations International DMCC’s TradeAssets blockchain platform for financial institutions situated in Dubai. As per the media release, TradeAssets is the first request-for-quote (RFQ) auction platform that utilizes blockchain technology to minimize the bottlenecks of financial firms when purchasing and selling trade finance products.
Bladex will be the initial bank from the Latin American area to become member of the Dubai-run platform as a result of the bilateral collaboration. Fintech Innovations International DMCC desires to promote a greater number of local financial firms to facilitate a more efficient flow of transactions across the various areas. Bladex was already able to create sophisticated connections in several jurisdictions thanks to TradeAssets. The organization is now in negotiations with a number of Indian banks to promote the Latam-India trade financing gateway, where trade volumes totaled $43 billion in 2021 and increased by 46% annually.
“Bladex is establishing its comprehensive strategy on a distinctive business model that will profit from a collection of critical coalitions, including the one with TradeAssets, which intends to capture the prevailing finance possibilities throughout key trade routes in Latin America in an effective and safe way,” said Jorge Salas, CEO of Bladex.
TradeAssets was founded in Dubai over three years back and is presently active in over thirty countries, earning $2 billion in transaction volume. HSBC, Citibank, and Bank of Africa are just a few of the many institutions seeking to use blockchain technology to expedite trade dissemination. “This relationship with Bladex is exciting and a honor for us. Bladex, as an industry leader in the Latin American trade funding sector, offers a distinct view into the whole area and is a significant institution intent on expanding its global connection inside the continent and even beyond “Co-Founder and President of TradeAssets, Sumit K. Roy, stated.
Using smart contracts, built-in administration, and distributed ledger technology, blockchain-powered trade funding distribution enables improved and expedited access to fresh liquidity pools and the formation of fresh trading collaborations. In 2020, TradeAssets teamed with the initial Islamic bank to deploy blockchain technology in trade financing, Abu Dhabi Islamic Bank (ADIB). The organization developed ADIB Direct eFX, enabling its clients to get foreign exchange rates instantly for overseas transactions.