Hang Seng Bank Completes Pilot Trade Transaction On Hong Kong Central Bank’s Blockchain Platformbr>
Hong Kong-based Hang Seng Bank has successfully completed an end to end trade transaction for two corporate customers using Hong Kong Monetary Authority (HKMA)’s recently launched blockchain trade finance platform.
Hang Seng Bank is a commercial bank whose major business activities include retail banking, wealth management, commercial banking, treasury services, and private banking. It operates a network of around 260 service outlets in Hong Kong and is part of the HSBC Group, which holds a majority equity interest in the bank.
Last month, the bank completed an end to end blockchain transaction between Clover Group International Limited and Regina Miracle International Limited for the sale and purchase of apparel accessories. Preparation and transmission of digital trade documents, auto data matching and the raising of the trade finance request were all conducted through HKMA’s eTradeConnect platform, which allows small companies to give their data over to the major banks easily, and gain access to the same finance mechanism that larger companies use.
First announced in Oct 2017, the eTradeConnect platform was developed in collaboration with twelve major banks in Hong Kong. The platform is one of the largest examples globally of a government-led, cross-bank effort to reform the multi-billion dollar trade finance sector using blockchain technology.
Hang Seng Bank said that the pilot trade transaction proved that the eTradeConnect platform enhances trade efficiency, reduces risk and improves financing accessibility through the digitization of trade documents.
“We are pleased to have worked with the HKMA and other banks in Hong Kong to introduce the eTradeConnect trade finance blockchain platform, which marks a new milestone in the advancement of FinTech in Hong Kong,” said Donald Lam, Head of Commercial Banking at Hang Seng. “As part of our ongoing commitment to providing comprehensive and efficient services, we will continue to invest in technology to better serve the changing needs of customers in a rapidly evolving market environment.”