The autonomous Chinese territory’s de facto central bank which is also the Hong Kong Monetary Authority (HKMA) is all set to launch the live blockchain based trade finance platform two months from now i.e. in September 2018.
In an email sent to Coindesk regarding the lunch of the platform, one of the authority stated that 7 banks in Hong Kong will initiate the trade finance platform which is based on blockchain technology. The project is targeted for launch by September 2018 and it is being facilitated by the HKMA.
Total of 21 banks is there that will participate as participating nodes in the HKMA’s blockchain platform which will also include Standard Chartered and HSBC, as per the report submitted by Financial Times on Monday.
Reports also suggest that in order to bring transparency to data sharing across financial institutions, several banks along with HKMA completed a test for the trade finance platform. The project was revealed publicly for the first time early in 2017 during which consulting firm Deloitte was the facilitator for the project and Bank of East Asia, HKMA, Hang Seng Bank, Bank of China, HSBC as well as Standard Chartered Bank were the other participants.
On Monday HKMA explained that the trade finance platform project aims to reduce trade finance related frauds and the issues related to double financing. It will increase the credit availability and lower the financing costs in the long run. The project will also help small and medium-sized enterprises (SME’s) towards trade financing.
The email also mentioned the details of other institutions apart from the founding banks that have shown their interest towards the trading finance platform. It is expected more banks will join the project in the future according to HKMA.
The time when the website will be live, it will be the first live blockchain trade finance platform in the history of crypto that will be backed by a government institution. Tough a revolution has just begun where government agencies are backing cryptocurrency and blockchain based platform so that people can trust more on the technology. Earlier this month We.Trade dubbed trade finance blockchain platform was announced by a group of European banks that was built with the assistance from tech giant IBM.
Another report states that to settle cross-border transactions, a blockchain-based trade finance network is also in progress by HKMA who has collaborated with its counterpart in Singapore to make sure that the project goes live soon. A launch date for the same was previously announced by both the partners stating that the project might go live early in 2019.
ING Groep NV and HSBC earlier in May revealed that they successfully performed world’s first trade finance transaction by making use of single blockchain platform called as Corda which was developed by New York-based blockchain consortium R3.