On July 15, Hong Kong Monetary Authority would launch its own blockchain trade finance solution with 21 banks in August.
The Hong Kong blockchain venture is possibly the first government-steered project to try a reinterpretation of the foundations of the $16 trillion USD global trade finance market.
A fintech subsidiary of the world’s largest insurer Ping An Insurance Company of China, Ltd. OneConnect will develop the platform.
The blockchain-powered platform is for trade participants across the supply chain to be connected, especially the SMEs. Twenty-one banks will join the groundbreaking venture and will co-own the platform with Hong Kong’s financial regulator.
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The main goal of the venture is to connect the gap in trade finance as well as to cultivate small businesses.
The established DLT trade platforms will strive to lessen the cost to onboard new small businesses and to increase commercial transparency.
The blockchain platform will most likely decrease processing times and associated costs by ruling out traditional paper-intensive processes.
Meanwhile, latest on the crypto news, Bithumb was hacked last month losing over $31.5 million through a breach. The company then strived hard to recover almost $16 million of the total loss. Despite this hack, the exchange is trying to work really hard to get their hands on the geographical expansion.