Hong Kong’s apex Bank plans to test out blockchain-based trade finance platform as reported by Financial Times Media. The apex Bank stated plans to linked 21 different banks including include HSBC and Standard Chartered Banks in the platform. Notwithstanding a large number of blockchain start up led bank platforms, the apex bank platform would undoubtedly become the largest and first government – backed trade platform.
According to Jessica Tanks, Deputy Chief Executive of Ping An Groups
“Instead of individual banks trying to do this you have the regulator trying to bring the banks together”. OneConnect, the Ping An Group’s finance technology company and firm responsible for designing the Hong Kong blockchain-based trade finance platform, stated that it has already deployed the technology in China.
The set objective of the Hong Kong Monetary Authority’s blockchain-based trade finance platform is to minimize the sheer time and paperwork required in routine trade finance and supply-chain finance transactions. The platform is expected to allow verification process to be faster and speed up the credential confirmation process from all parties concerned.
When asked how the platform would be owned and operated, the apex bank says banks that have partnered up with the Hong Kong regulator will all together own the platform. It reiterate the total number of financial institutions expected to join the platform is yet to be concluded as many banks are still considering joining the platform though 21 banks are currently expected to join the platform.
Tan dived to state the important features of the blockchain – based trade finance platform. He stated its ability to assist start up companies gain greater access to supply – chain finance and trade. He noted Small companies are often denied a variety of banking services due to the significant time required to sign up new clients.
OneConnect went further to state the blockchain – based trade finance platform will help in fraud detection and retrieve companies information at a lower rate.
Blockchain technology is believed to be the next generation of digital economy. It’s usage will speed transactions across industries, reduce fraud, provide instant global payment settlement, reduce paperwork documentation and cost.
OneConnect earlier this year launched an office in Singapore with over 100 employees outside of China. The Financial Times reported that the Hong Kong trade finance platform is considered one of the largest ventures that exist outside of mainland China.
The adoption of blockchain technology has seen tremendous growth this year. Several start up have continued to pop up with different issues facing mankind and harnessing the blockchain technology to solve them. Banks also have continued to show greater interest in blockchain technology. It’s, therefore, no surprise that almost every bank is looking to explore and test blockchain technology to operations. Report shows about eighty percent of banks have constituted blockchain Team developers to see how blockchain technology could be harnessed.