ICICI Bank on Wednesday said it has successfully executed transactions in international trade finance and remittance using blockchain technology in partnership with Emirates NBD.
India’s largest private sector bank by consolidated assets said it is the first bank in the country and among the first few globally to exchange and authenticate remittance transaction messages as well as original international trade documents related to purchase order, invoice, shipping and insurance, among others, electronically on blockchain in real time.
The usage of blockchain technology simplifies the process and makes it almost instant — to only a few minutes. Typically, this process takes a few days, ICICI Bank said in a statement.
ICICI Bank executed these pilot transactions through its blockchain network with Emirates NBD, a West Asia-based banking group, on a custom-made blockchain application, co-created with EdgeVerve Systems, a wholly-owned subsidiary of Infosys.
Chanda Kochhar, MD & CEO, ICICI Bank said, “…I am delighted that we are the first bank in India and among a few globally to set up a blockchain application. We have also marked a milestone by piloting a blockchain network with Emirates NBD as a partner and have successfully executed cross-border open account trade finance and remittance transactions.
“I envision that the emerging technology of blockchain will play a significant role in banking in the coming years by making complex bilateral and multilateral banking transactions seamless, quick and more secure.”
Going forward, ICICI Bank also intends to work on expanding the blockchain ecosystem and create common working standards to contribute to the commercial adoption of this initiative.