The Hong Kong Monetary Authority (HKMA) is about to launch a live blockchain trade finance platform in the few months to come report states.
In a cited report from Coindesk news outlet, HKMA stated “The Trade Finance Platform is a blockchain project initiated by 7 banks in Hong Kong. The project has been facilitated by the HKMA and is targeted for launch by September 2018.”
The Financial Times has it that the HKMA’s blockchain platform already has partnered with 21 banks including HSBC and Standard Chartered.
This project, however, has been everywhere in the papers since early 2017 when reports stated several banks had completed a test for the trade finance platform, in partnership with HKMA, with an aim to “bring transparency to data sharing across financial institutions.” Member firms at that time included the HKMA, The Bank of China, The Bank of East Asia, Hang Seng Bank, HSBC and Standard Chartered Bank, and also Deloitte, a consulting bank, to help serve as the facilitator for the project.
“The aims of the platform are to reduce frauds related to trade finance and double financing, and therefore lead to increased credit availability and lowered financing costs in the long run. This may, in turn, help small and medium-sized enterprises (SMEs) access to trade financing,” the HKMA commented.
Beside the establishing banks, different foundations have likewise demonstrated enthusiasm in the platform, and the HKMA anticipates that more banks will slowly participate later on.
If this project goes live, the HKMA task will be one of the principal live blockchain exchange fund platforms supported by a government organization. Sometime last month, a gathering of European banks additionally reported that an exchange back blockchain platform named We.Trade, worked with assistance from innovation monster IBM, is likewise live.
For now, the HKMA is working with its partner in Singapore to build up a blockchain-based exchange fund system to settle cross-border exchanges. The two accomplices previously slated a launch date in early 2019.