Hong Kong, Abu Dhabi Partner To Develop Blockchain Trade Finance Networkbr>
The Hong Kong Monetary Authority (HKMA) will be working with Abu Dhabi regulators to develop a blockchain system for cross-border trade finance.
On Tuesday, the HKMA signed a FinTech co-operation agreement with Abu Dhabi Global Market (ADGM), which supervises the financial market of the UAE’s capital. It was signed in Hong Kong between Nelson Chow, Chief FinTech Officer of the HKMA and Richard Teng, Chief Executive Officer of the Financial Services Regulatory Authority (FSRA) of ADGM.
The agreement will allow the HKMA and the FSRA of ADGM to collaborate and refer innovative businesses and activities to each other’s market, facilitate greater sharing of relevant information, providing support in the authorization processes where appropriate, and explore projects that are mutually beneficial to both jurisdictions.
The HKMA said it will collaborate with the FSRA to develop innovative FinTech projects, with a specific interest focusing on blockchain utilization in international trade finance.
“We are particularly pleased to start a dialogue with FSRA on the opportunity to build a cross-border trade finance network using distributed ledger technology (DLT),” said Nelson Chow, chief FinTech officer of the HKMA.
The HKMA has already started a DLT pilot of a trade finance proof-of-concept (PoC) with the Monetary Authority of Singapore (MAS). Over 20 global banks and financial institutions joined the pilot in November in an effort to advance the PoC to commercial production, which was expected to be ready by early 2019.