Yesterday, CargoSmart
announced the completion of an interoperability proof of concept (PoC) with the Hong Kong Monetary Authority’s (HKMA) trade finance blockchain, eTradeConnect. The trial combined supply chain shipping data with trade finance transactions, and also involved PwC, HSBC, COSCO, Hong Kong’s Bank of China and Standard Chartered Bank, OOCL, and the Bank of East Asia.
The firms hoped to show that blockchain could be used in the interoperability of shipping and finance data. This PoC linked the
Global Shipping Business Network (GSBN), a blockchain consortium for which CargoSmart is the tech provider, and
eTradeConnect. It allowed banks using eTradeConnect to view shipping records, streamlining trade finance for logistics.
When applying for financial services, shipping and logistics firms must provide banks with records, which are then verified. This can be a long and complex process. While storing supply chain documents with blockchain is
not new, CargoSmart’s trial demonstrated how documents could be validated and shared between industries efficiently.
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