Hong Kong, China’s trade finance blockchains to interoperate

Today the Hong Kong Monetary Authority (HKMA) announced that it will collaborate with the People’s Bank of China (PBOC).  The central banks signed a memorandum of understanding to link Hong Kong with the PBOC’s trade finance blockchain. The partnership was solidified today between the PBOC’s Digital Currency Institute and Hong Kong Interbank Clearing. According to Chinese media, the two will begin working on a proof of concept early next year. It hopes to streamline trade financing and bring the benefits of blockchain to Hong Kong banks.

Linking trade finance blockchains

China’s trade finance blockchain, also known as the ‘Bay Area Trade Finance Blockchain Platform” (BATFB)’, was built in conjunction with the Digital Currency Institute. As we reported four months ago, it had processed $4.5 billion (30 billion Yuan) and had 28 bank members since its launch in September last year. Now, as Sina claims, the platform has 29 banks, accounting for 485 branches in Shenzhen, with another 10 in the process of joining. It has further completed over 5000 transactions with 1898 enterprises, amounting to a business volume of $11 billion (75 billion Yuan).

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