Today multiple Chinese news outlets report that a cooperation agreement for a blockchain forfaiting platform was signed between commercial banks China CITIC Bank, the Bank of China, China Minsheng Bank and the People’s Bank of China (PBoC) Clearing Center. The solution was originated by China CITIC Bank in 2018 and has processed cumulative transactions of 300 billion yuan ($42 billion), up from 20 billion yuan ($2.82 billion) eleven months ago. Together, the two largest Chinese trade finance blockchains have processed more than $100 billion of trades.
With the deal, it’s considered that the CITIC platform has officially become the industry platform. In addition to standardizing contracts and the forfaiting of domestic letters of credit, it also enables secondary market trading in forfaiting assets amongst an alliance of 43 banks.
However, with the endorsement, the three banks are expected to transfer know-how to the PBoC Clearing Center to advance its domestic letter of credit blockchain solution launched last December.
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