UAE DP World to issue stablecoin for cross border payments

UAE DP World to issue stablecoin for cross border payments

DP World, a global player in the logistics and trade ecosystem, is partnering with financial and technology providers to address inefficiencies in cross-border payments with a stablecoin issuance. The announcement was made at World Economic Forum in Davos.

As customers in emerging markets such as Asia and Africa grapple with prolonged settlement times, restricted access to finance, and a lack of transparency DP World will collaborate with firms in Singapore, India and UAE as well as other key markets.

As per the press release, DP World aims to introduce accessible, instant, and transparent cross-border payment solutions powered by stablecoins. The initiative is designed to simplify and accelerate international transactions, empowering businesses in emerging economies to thrive in an increasingly interconnected world.

DP World Group Chairman & CEO, Sultan Ahmed bin Sulayem, said, “By introducing stablecoin-based payment options, we are not just addressing a critical gap in the trade ecosystem but also reaffirming our commitment to innovation and leadership in global commerce. This initiative aligns with DP World’s broader mission to enhance trade flows and economic development in regions that need it most. We believe this initiative will redefine the way businesses engage in cross-border trade, particularly in regions where financial barriers have limited potential. DP World is committed to creating a more inclusive and efficient trade ecosystem.”

DP world believes that stablecoins will drastically reduced settlement cost and times for cross-border payments, giving the example of a textile manufacturer in Ethiopia which exports raw cotton to a fabric producer in India but faces significant delays in receiving payments.

This is due to the traditional correspondent banking systems requiring multiple intermediaries, resulting in settlement times that can extend to several days or even weeks. Stablecoins will also improve financial accessibility for businesses of all sizes such as the Ethiopian supplier struggling with cash flow, limiting its ability to scale operations or meet additional orders.

Finally stablecoins will enhance transparency and trust in international trade transactions and the lack of real-time tracking of the transaction status leaves both parties uncertain about when the payment will be completed.

The announcement comes months after the UAE Central Bank came out with its stablecoin regulation, allowing AED Stablecoins to be used for payments for products and services within the UAE, and for other stablecoins to be used for the purchase of virtual assets. Both would need to be regulated thought within the UAE.

As a result the first regulated AED stablecoin was announced under the name AECoin. DP World’s stablecoin could become the second one to be regulated, while Tether awaits its approval.

28% of Egyptian businesses surveyed in DP World study want to use blockchain

28% of Egyptian businesses surveyed in DP World study want to use blockchain

New research backed by DP World, showed that Egyptian businesses plan to leverage technology to enhance supply chain efficiency and agility with 28 percent of them exploring the use of Blockchain. As per the research 28% of Egyptian executives surveyed want to leverage technology. In addition, 33 percent are exploring advanced automation, and 28% want to use Blockchain to improve traceability, security, and data protection.

As Egypt’s economy expands into new sectors and positions itself as a manufacturing hub in Africa, 28% of executives view market expansion as the key driver for export growth. Europe (37%) and North America (34%) are expected to significantly boost export revenue in 2024. Technological advancements (35%) are anticipated to increase output levels and import values.

Rizwan Soomar, CEO & Managing Director of DP World for North Africa & the Indian Subcontinent, commented, “Aware of current economic and geopolitical hurdles, we echo the optimism of the surveyed Egyptian executives. They aim to fortify their supply chains with technology and explore new growth markets. These findings align with DP World’s initiatives in Egypt, where technology implementation addresses business challenges and bolsters resilient supply chains. For instance, at the Port of Ain Sokhna, our technology has improved truck turnaround times by 35% and vessel productivity by 16%. We’ve also introduced multi-channel payment solutions and customer self-service applications for real-time data access, enhancing cargo control and visibility. Together with our development of end-to-end logistics solutions in Egypt, underpinned by DP World’s CARGOES suite of technology platforms, we aim to build resilient supply chain solutions that enable businesses to navigate the challenges of trade seamlessly and efficiently.”

DP World itself has been strongly utilizing technology. For example DP World, Fintech owned platform, DP World Trade Finance partnered with Blockchain enabled UAE Trade Connect to transform trade finance and combat fraud across the UAE.