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Hong Kong to Launch a Live Blockchain Trade Finance Platform

The Hong Kong Monetary Authority (HKMA) will launch its live Trade Finance Platform (TFP) in September. "The TFP is a blockchain project commenced by 7 banks in Hong Kong.

The confirmation came from the HKMA’s Chief Fintech Officer- Nelson Chow while conversing at this week’s GTR Tradetech Forum held in the city.

It develops on the number of blockchain “proofs of concept” that the authority has tackled. It has authored the two whitepapers which examine the technology’s future in trade finance.

The TFP will nourish into the Global Trade Connectivity Network (GTCN). This is the other blockchain-based solution developed in partnership with the Monetary Authority of Singapore (MAS).

“The GTCN is in the design stage but the TFP is ready to launch in September. We’re in regular meetings […] showing them the value proposition. The last thing we want is to have the platform ready, but there are no customers,” Chow said.

The Trade Finance Platform Project

The HKMA has been facilitating the project and targets to launch by September 2018,” via email the authority told CoinDesk.

In accordance with the “Financial Times report” on Monday, there are 21 banks engaging as assisting nodes, including HSBC and Standard Chartered in the HKMA’s blockchain platform.

Since early in 2017, the project has been public when news about various banks to sum up the test for the trade finance platform, together with the HKMA, to drive transparency to data distribution across financial institutions was in action.

At that time the participants were the HKMA, Bank of East Asia, HSBC, Bank of China, Hang Seng Bank, and Standard Chartered Bank, with negotiating firm Deloitte as a project facilitator.

“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,”- explained today by the HKMA.

Apart from the founding banks, some institutions have also shown interest in the platform. The HKMA hopes the majority of the banks to gradually unite in the future.

After this project goes live, it will be one of the initial live blockchain trade finance platforms which will be backed by the government institution.

Meanwhile, the HKMA is also supporting its counterpart in Singapore. They are building a blockchain-based trade finance network to resolve cross-border transactions. Both the partners previously planned a launch date somewhere in the early 2019.

What do you think will be the result of this plot? Will September become the lucky event for the blockchain trade finance platform? Let us know your opinion in the comment section below.

Image Source: Hong Kong

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Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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