MUFG completes first blockchain-enabled trade finance deal at GIFT City
MUFG Bank has completed its first fully-digitalised trade finance transaction from its GIFT City Branch for a subsidiary of Tata International, the global trading arm of the Tata Group.
Utilising the Contour Network Hub from Xalts, MUFG and Tata International's Singapore treasury centre digitally negotiated, prepared, applied, and accepted a $15-million Letter of Credit within three hours, compared to a document-based transaction which would usually take up to two days.
This breakthrough significantly enhances international trade efficiency and underlines MUFG's dedication to leveraging technology in support of trade digitalisation, while enhancing its suite of transaction banking solutions for its clients.
This pioneering transaction at MUFG’s GIFT City branch (Gujarat International Finance-Tec City) also underscores its significance to the bank’s network in India. MUFG’s GIFT City branch is now one of the largest lenders at the GIFT IFSC (International Financial Services Centre) and reaffirms the bank’s commitment to India’s vision of becoming a global financial hub.
Belinda Han, Managing Director, Head Transaction Banking Asia Pacific, of MUFG, commented: "MUFG continues to be at the forefront of digital innovation, enabling our clients to navigate the evolving financial landscape with ease. By leveraging our GIFT City branch we contribute to India's vision of becoming a gateway to the world. Our collaboration with Xalts and Tata International exemplifies our dedication to leveraging cutting-edge technology to drive sustainable growth and deliver exceptional value to our clients."
“We welcome MUFG Bank on our platform and look forward to working closely with their team to enable their more corporate treasuries to reduce time, cost and manual effort in managing treasury and trade finance operations. We are honoured to support esteemed customers such as Tata International in their treasury & trade finance digitalisation journey,” said Supreet Kaur, Chief Operating Officer, Xalts.
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