China Banking Association (CBA) launched a blockchain-powered inter-bank platform to build a new trade finance ecosystem and improve the efficiency of financial services.
The new platform called "the China Trade Finance Inter-Bank Trading Blockchain Platform" is aimed at improving the transaction mode, transaction efficiency, and ensuring transaction security to achieve electronic, informational and convenient inter-bank transactions.
The platform is based on the distributed data storage, point-to-point transmission, consensus mechanism and encryption algorithm of blockchain technology, to help manage information circulation, data security, privacy protection and transaction execution of banks in inter-bank trade finance business.
The platform has successfully completed the first and second phase of the network test, forming a technical standard and business product standard for smooth operation. Ten Chinese banks were part of the tests.
They include Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, China Everbright Bank, Shanghai Pudong Development Bank, China Postal Savings Bank, Ping An Bank, and HSBC Bank (China).
The platform was successfully put into operation, and ICBC and China Merchants Bank completed the verification of the first inter-bank domestic letter of credit chain.
Technologies and services for the platform are provided by Hang Seng Electronics, Nanjing Runchen Technology, Hengyin Financial Technology, Beijing Zhongxiangbit Technology and other financial technology companies.
CBA, the Chinese banking industry self-regulatory organization, plans to further expand the platform coverage to include the majority of small and medium-sized banks later in 2019.
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