A new partnership is on the way to the Asian market – this time between the Hong Kong Monetary Authority (HKMA) which has partnered with Chinese Ping An, releasing a blockchain-based trade finance platform. The joint effort will speed up the process of preventing fraud.
It all started with the Hong Kong’s central bank initiative in March this year, when the bank unveiled a proof-of-concept (PoC) blockchain platform built for trade finance.
While the enterprise initially included the Bank of China (Hong Kong), HSBC, the Bank of East Asia, Deloitte, Hang Seng Bank and Standard Chartered (Hong Kong), there are now more than 21 banks involved in the new enterprise. According to The Financial Times, all of them share ownership in the platform.
Even though the trials for the platform started in December and the announcement happened in late March, now the HKMA is ready to finally launch it. The launch will probably take place next month in the domestic country. Once the platform is in place, it will expect to reduce the amount of time needed to perform the daily supply-chain finance and trade finance transactions.
What’s most interesting is the fact that the new platform will be able to clear finance transactions in 24 hours – directly opposing the traditional ’10 business days’ timeframe. On top of this, the system will automatically check the validity of all transactions and the parties involved. This will significantly decrease the amount of paperwork.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post