Major Banks Launch Blockchain Trade Finance Platform in Hong Kong

HSBC, Standard Chartered and 10 other banks launched this week a blockchain-powered trade finance platform which is expected to increase the efficiency in funding the multi-trillion-dollar funding of global trade.

 

HSBC says that the approval of trade loan applications, which usually takes more than one day, can now be done in around four hours on their eTrade Connect platform.

 

The heavily paper-based trade finance transaction industry, which was worth around $9 trillion in 2017, is expected to benefit from blockchain technology which can reduce the risk of fraud in letters of credit (LoC) and other transactions, as well as cut down on the number of steps used.

 

Source: Reuters