Blockchain Trade Finance Platform To Be Launched By Hong Kong Monetary Authority In Septemberbr>
The Hong Kong Monetary Authority (HKMA), the country’s central bank, will be launching its blockchain trade finance platform in September.
The blockchain platform was developed by OneConnect, Ping An Group’s financial technology company. OneConnect claims that while there are a large number of bank-led blockchain trade platforms, this is one of the largest examples and one of the earliest government-backed trade finance platforms to go live.
The platform is designed to reduce the risk of fraudulent activity, while increasing business transparency, operational efficiency and productivity in trade finance. It will allow small companies to give their data over to the major banks easily, and gain access to the same finance mechanism that larger companies use. As many as 21 banks, including HSBC and Standard Chartered, are expected to join the HKMA platform.
“Instead of individual banks trying to do this you have the regulator trying to bring the banks together,” said Jessica Tan, the deputy chief executive of Ping An Group.
In January of this year, a joint analysis by global consultancy Accenture and operations-benchmarking specialist McLagan showed that adoption of blockchain technology could help eight of the world’s 10 largest investment banks slash infrastructure costs by an average of 30 percent a year, which would translate to between $8 billion and $12 billion in annual cost savings.