Middle East automotive sector registers first digital asset financing transaction

Middle East automotive sector registers first digital asset financing transaction

SAIC Motor and Tajeer Group, the exclusive distributors of MG cars in Saudi Arabia, have turned to distributed ledger technology (DLT) to fund a deal. The deal sees financial giant HSBC as a party to the landmark deals as it is a first for the entire Middle East auto industry.

The transaction took place on the Contour platform, a network that bundles global banks and corporate giants into a trusted digital network. The platform leverages DLT to provide “seamless integration with market-leading digital record systems” to improve data flow across “fragmented ecosystems”.

According to a joint press statement by the parties, Contour was used to securely digitize the credit documentation required by the Tajeer Group to purchase SAIC Motors cars. The parties agree that this method accelerated transaction times by up to 10 times compared to the physical use of documents.

“This transaction marks a significant milestone in the Middle East automotive sector and demonstrates that distributed ledger technology is successfully transforming the trade finance ecosystem,” said Carl Wegner, Chief Executive Officer of Contour. “We are excited about the potential for wider adoption in this industry as having a digital commerce solution is no longer an option, but the new standard for the industry.”

Using DLT in global financing has several benefits, including building trust between participants by suppressing fraud prevention. The decentralized nature of the technology provides players with a wide range of financing options following the emergence of decentralized financing protocols (DeFi). The peer-to-peer lending options available have been touted to usher in a wave of changes in global corporate finance.

Tom Lee, Managing Director of MG Motors, praised the move as bringing him “great joy”, while David Leslie noted that using DLT “can significantly reduce friction and speed up the pace for companies trading with Saudi Arabia.” Arab entities.”

The entire Middle East is turning to digital assets

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