Hong Kong Monetary Authority to Launch Multi-Bank Blockchain Trade Finance Platform
July 16 2018 - 1:03PM
ADVFN Crypto NewsWire
Hong Kong’s 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 Group’s 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.
Using blockchain, “some” 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 “bringing banks together” 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.
“Instead of individual banks trying to do this you have the
regulator trying to bring the banks together,” 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, China’s
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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