Standard Chartered HK Completes First Cross-Blockchain Platform Transaction

The Hong Kong arm of Standard Chartered Bank announced today that the bank has successfully completed its first cross-blockchain platform transaction between Hong Kong and Mainland China.

Standard Chartered Hong Kong is a founding member of eTradeConnect, a DLT-based platform helping customers and trading partners to conduct trade and trade financing in a cost-efficient way.

Standard Chartered executed the transaction through a recently established connectivity between eTradeConnect in Hong Kong and the People’s Bank of China Trade Finance Platform (PBCTFP) in Mainland China.

Standard Chartered Hong Kong participated in the pilot transactions as one of the seven banks to test the connectivity and Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term between the two trade platforms focused on Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology. The process successfully helped clients in Hong Kong to execute trade transactions through eTradeConnect with its suppliers who used PBCTFP in Mainland China to complete the trades.

Commenting on the successful completion, Ricky Kaura, Head of Transaction Banking for Asia Pacific, Middle East, and Africa at Standard Chartered, said: “As a key trade bank in the world, Standard Chartered plays a leading role in trade digitisation with the aim of promoting global trade and prosperity. Hong Kong is an important regional trade hub with close business ties with Mainland China. We hope the success of connecting the two blockchain-based trade finance platforms in Hong Kong and Mainland China can further boost cross-border trade benefitting both importers and exporters.”

Eliminating Delays

Trade and finance transactions involve a lot of manual paperwork and approvals that can take days and even weeks to process. However, with the help of cross-blockchain trade finance platforms, that process can now be completed easily in an efficient, secure and transparent environment.

While talking about eTradeConnect and PBCTFP, Colin Pou, Executive Director (Financial Infrastructure) of the Hong Kong Monetary Authority, said: “Mainland China has been Hong Kong’s largest export and import market. The Proof-of-Concept trial (PoC) that connects eTradeConnect and the PBCTFP aims to provide importers and exporters in both places with more convenient trade finance services. We are delighted to see Standard Chartered Hong Kong’s active participation in phase 1 of the PoC and involvement in the first batch of trade financing transactions through this cross-platform linkage.”