Two more major banks successfully completed a cross-border transaction executed on a blockchain today.
Announced by ICICI Bank and Emirates NDB, the trial represents the latest efforts among banks worldwide to use the technology to facilitate faster, lower-cost transactions. Notably, ICICI and Emirates NDB are among the largest banking groups in their respective countries.
In one of the tests, an ICICI bank branch based in Mumbai transmitted a transaction, via a blockchain, to an Emirates NDB location in Dubai. The banks also tested a distributed ledger for tracking documentation for trade finance.
In some ways, the trials reflect the rising profile of blockchain tech in both India and Dubai.
India’s central bank recently called for financial institutions in the country to explore possible use cases, meanwhile, in Dubai, the government has moved to back development efforts that could see real-world applications within the next several years.
For now, ICICI and Emirates NDB say that the trials are the first of more to come.
Chanda Kochhar, CEO and managing director of ICICI, said in a statement:
“I am delighted that we are the first bank in India and among 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.”
India and UAE coins via Shutterstock