Hong Kong pushes forward with blockchain project for trade finance :: Lloyd's List
HONG KONG-based CargoSmart has announced the successful completion of a proof-of-concept for a multi-bank blockchain consortium in Hong Kong facilitated by the Hong Kong Monetary Authority, with the project aiming to prove that linking supply chain data with trade finance transactions can provide enhanced transparency, traceability, and efficiency for member banks and their trade finance customers.
The proposed solution intends to accelerate the document validation and trade finance process by using blockchain technology to circumvent traditional barriers. The eTradeConnect concept explored ways to improve global trade through enhanced collaboration among shippers, banks, terminal operators and ocean carriers, with applications to be further developed once the Global Shipping Business Network is formed.
The GSBN initially comprised carriers CMA CGM, Cosco Shipping, Evergreen, OOCL and Yang Ming, along with ports such as DP World, Hutchison Ports, PSA International and Shanghai International Port Group. It was formed a year ago to provide an alternative to Maersk and IBM’s TradeLens blockchain solution.
The project connected two blockchain networks to bridge the current gaps in trade financing. When granted access to its customers’ relevant historical records provided by ocean carriers and terminals, banks in the eTradeConnect network would be able to shorten the customer validation process, with a better understanding of customers’ backgrounds and with real-time, credible ship....