The new platform aims at improving trade finance activities, keeping the Chinese banking industry at the forefront of the developing industry and controlling financial risks.
The announcement states that the new platform will be launched for live use after several pilot programs have tested whether the new platform can function properly.
At least 10 major Chinese banks–including the Industrial and Commercial Bank of China, the Agricultural Bank of China, and the China Construction Bank–have signed up to use the new platform and completed the first two network trials. According to the announcement, the platform was used by the Industrial and Commercial Bank of China and China Merchants Bank to finish at least one “inter-bank domestic credit chain letter.”
Commenting on the platform, Fang Xiao, vice president and head of industrial and commercial finance at HSBC China, said “The establishment of this inter-bank platform can be described as extraordinary, opening up barriers between different banks and realizing the interflow of information flow.”
For some time now, the Chinese banking industry has experimented with blockchain technology. In March 2017, China’s Ganzhou Bank announced the implementation of a blockchain-powered billing platform to “increase the reliability and speed of financial services transactions within the country.” In addition, in July 2018, Industrial and Commercial Bank of China sought a patent for a blockchain-backed system that could be used to improve the financial asset exchange process.