HSBC says it has fully executed two blockchain letter of credit (L/C) transactions in the Gulf.

One transaction is between firms in Saudi Arabia and Bahrain while the other is between companies in Oman and Abu Dhabi.

Aluminium deal

In the first transaction, Saudi British Bank - in which HSBC has a 29.2 per cent stake - issued an L/C for the Saudi Arabian buyer, Altaiseer Aluminium Corporation (TALCO).

The deal involved the shipment of homogenised aluminium billets from Aluminium Bahrain to TALCO.

First for Oman

The second transaction involved the issuance of a fully digitised L/C created on a distributed ledger platform, with HSBC Oman as the advising bank and Oman Oil and Orpic Group as the L/C beneficiary.

The transaction involved the shipment of polypropylene, a thermoplastic polymer used in a wide variety of applications, to Abu Dhabi National Carpet Factory.

The deal marked the first blockchain pilot trade finance transaction in Oman.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.