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Next month Hong Kongās de facto central bank will see a concerted regulatory effort to improve trade finance processes using a bespoke blockchain platform.
Hong Kongās de facto central bank will launch its own blockchain trade finance solution with 21 banks in August, Financial Times (FT) reported Sunday, July 15.
The joint venture between the Hong Kong Monetary Authority and Chinese company Ping An Groupās fintech subsidiary OneConnect aims to substantially reduce paperwork, costs security risks for participants, FT reports.
A major aim of the 21-party scheme is to reduce the amount of time and bureaucracy involved in signing up new fledgling businesses to banking services by smoothing over transactions.Ā Ā
Using blockchain, āsomeā transactions will process in just one day against up to fourteen days using current methods, as FT reports.
Originally announced in November 2017, the move marks the first example of a regulator ābringing banks togetherā to improve trade finance, as Ping An deputy chief executive Jessica Tan described it. As Cointelegraph reported in May, a previous trade finance deal from HSBC was a smaller-scale affair, involving an individual bank.
āInstead of individual banks trying to do this you have the regulator trying to bring the banks together,ā Tan told FT.
Ping An has already developed blockchain-powered solutions for the Chinese domestic market, and hopes the same technology will see success over the border, according to FT. The company, Chinaās second-biggest insurer with assets worth 4.7 tln yuan ($704 bln), joined the distributed ledger technology-focussed R3 Consortium in 2016.
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