Japan’s MUFG Bank has successfully completed its first blockchain-enabled trade finance transaction with Tata International Limited, the global trading arm of the Tata Group. This milestone was achieved through MUFG’s GIFT City branch in Gujarat, marking a significant step forward in trade digitalization.
Revolutionizing Trade Finance with Blockchain
The transaction was facilitated using the Contour Network Hub from Xalts, enabling MUFG and Tata International’s Singapore treasury centre to digitally negotiate, prepare, apply, and accept a $15-million Letter of Credit within just three hours. Traditionally, such transactions would require up to two days when processed with paper-based documentation.
This breakthrough highlights how blockchain technology can significantly enhance international trade efficiency. It also reflects MUFG’s commitment to leveraging cutting-edge technology to support trade digitalization and expand its suite of transaction banking solutions.
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Strengthening MUFG Bank Presence in India
The success of this transaction reinforces the importance of MUFG’s GIFT City branch (Gujarat International Finance-Tec City) within the bank’s network in India. MUFG’s GIFT City branch has emerged as one of the largest lenders at the GIFT IFSC (International Financial Services Centre), underscoring its dedication to supporting India’s vision of becoming a global financial hub.
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Belinda Han, Managing Director and Head of Transaction Banking Asia Pacific at MUFG, stated: “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.”
Driving Business Efficiency for Tata International
Sumit Sharma, Group Head of Corporate Finance and Treasury at Tata International Limited, emphasized the direct impact of digitalization on business operations: “For a trading company like Tata International, the time saved in trade finance processes has a direct impact on our bottom line. With the connectivity for our multiple treasury centres to our counterparties and MUFG Bank through the Xalts platform, we are able to create efficiencies and auditability for every financial instruction executed electronically. We are committed to digitalization and using technology as an enabler for business growth.”
A New Era of Trade Digitalization
The successful completion of this blockchain-enabled transaction not only sets a precedent for future trade finance operations but also reinforces the role of technology in transforming global trade. As MUFG and Tata International continue to explore innovative solutions, the collaboration highlights how digitalization can drive efficiency, reduce transaction times, and enhance transparency in international trade.
