Ping An Insurance delivered blockchain-based international trade finance platform, eTradeConnect, which is initiated by seven founding banks in Hong Kong and facilitated by the Hong Kong Monetary Authority (“HKMA”). OneConnect, a Fintech subsidiary of Ping An, was appointed to help design, develop and deploy the platform.
At the Hong Kong Fintech Week, the Hong Kong Monetary Authority announced the official launch of eTradeConnect, initially connecting 12 joining banks with some of their trade finance pilot clients to share trade information with the use of blockchain technology.
Representing OneConnect, Ping An Group Deputy CEO, COO and CIO, Jessica Tan said: “OneConnect is proud to have helped deliver Hong Kong’s first blockchain-powered trade finance platform. This is also a first for the Asia Pacific region, which is a credit to the HKMA and banking industry.”
Founding banks of the platform include The Australia and New Zealand Banking Group Limited (ANZ), Bank of China (Hong Kong) Limited, The Bank of East Asia, Limited, DBS Bank (Hong Kong) Limited, Hang Seng Bank Limited, The Hongkong and Shanghai Banking Corporation Limited and Standard Chartered Bank (Hong Kong) Limited. Currently other member banks are Agricultural Bank of China Limited Hong Kong Branch, Bank of Communications Co., Ltd. Hong Kong Branch, BNP Paribas Hong Kong Branch, Industrial And Commercial Bank of China (Asia) Limited and Shanghai Commercial Bank Limited.
Leveraging blockchain’s distributed ledger technology, financial institutions will potentially be able to access real-time, secured and comprehensive trade information to conduct their risk assessment on loans. The blockchain technology will also enhance efficiency and potentially reduce financial costs for companies by digitalizing trade documents in trade loan applications.