The China Banking Association (CBA) hopes to target smaller banks to expand its blockchain platform developed for the domestic banking sector, reported by BlockTribune on Monday (January 7).
The China Trade Finance Inter-Bank chain blockchain trading platform is a system designed by the banking group to manage the storage, circulation and security of data for financial institutions (FI) using generalized accounting technology (DLT). When the system was launched just before the new year, the CBA said that 10 banks had adhered to its use, including the Industrial and Commercial Bank of China (ICBC), China Merchants Bank and HSBC Bank (China).
At the heart of the system, efforts are made to reduce the friction of information moving between banks and to use those efficiencies in data management to improve commercial financing transactions, according to reports.
"The creation of this interbank platform can be described as extraordinary, opening up barriers between the various banks and creating an exchange of information," said HSBC China's vice president and head of industrial and commercial finance Fang Xiao in a statement. . "The use of blockchain technology to promote commercial finance reform has become a global trend.The commercial pilots of the HSBC Group's blockchain overseas show that the blockchain is used to improve the efficiency, security and size of trade. "
HSBC launched its pilot blockchain commercial financing solution last year, announcing that it would continue to focus on the further development of the commercial finance platform in 2019. The bank also collaborated with IBM and former CEO of Ripple, Chris Larsen, to explore the use of blockchain for commercial finance.
His work in China also signals the efforts of the domestic banking sector to continue to develop blockchain solutions in banking and commercial finance. According to reports, the CBA plans to direct smaller banks to join its blockchain system.
"The China Banking Association intends to further expand the platform coverage, absorb most of the small and medium-sized banks to join the platform, expand the platform's business type and actively cooperate with the relevant agencies, such as taxation and customs , to give full play to the platform of industry organizations, "said the CBA in its announcement.