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400-billion-yuan turnover has been conducted on blockchain platform of China Construction Bank
Compared with other financial institutions in China, banks have the most urgent demand for blockchain.
“Blockchain technology can help banks alleviate the problems of information asymmetry and trust asymmetry. It is helpful to reform the internal system of the bank and optimize its management system and business process, banks can achieve a better balance between financial risk prevention and innovation. “
Over the past year, the trade finance field covering supply chain finance, domestic letter of credit, forfaiting has become the goal of Chinese banks competing for blockchain application.
Almost all Chinese state-owned banks have been involved in the trade finance field by blockchain platforms.
The blockchain trade financial platform deployed with domestic L/C, forfaiting, international factoring, re-factoring, with a total transaction amount of more than 400 billion yuan, attracting more than 50 customers from the same industry in 2019, according to the data from 2019 China Construction Bank annual report.
The semi-annual report shows that in January, PSBC (Postal Savings Bank of China) completed the first cross chain forfaiting transaction in the industry. By the end of the report period, its u-chain forfaiting business system has been connected to more than 10 partners in the industry, with a transaction scale of over 25 billion yuan.
Limited investment from insurance and securities companies
Banks can find blockchain application scenarios such as supply chain finance, asset management, cross-border/inter-bank payment, while the application scenarios of insurance and securities companies are relatively less than those of banks with a weaker infrastructure information construction. Only a few leading insurance and securities enterprises are willing to invest in blockchain application exploration.
Oneconnect, the blockchain platform launched by Shanghai-Ping An Group, the second-largest insurance company in China turned to U.S. for IPO in November, which successfully filed two blockchain services includes Cross-border Trade Platform in Tianjin Port and Oneconnect blockchain. It claims that its self-developed FiMAX blockchain technology can achieve 50,000 TPS (transactions per second) while maintaining a low latency of fewer than 0.05 seconds, by adopting its designed zero-knowledge proof algorithms.
Blockchain application scenarios of insurance and securities will be more clear as blockchain financial infrastructure and the establishment of industrial standards get mature.
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