Standard Chartered Bank said it is proposing to pilot a trade finance solution powered by blockchain technology. The Hong Kong unit of the bank is leading the DLT Trade Finance Working Group, formed under the Hong Kong Monetary Authority’s Fintech Facilitation Office. According to news reports, the bank has delivered a proof of concept to use blockchain in trade finance, developed in collaboration with the Bank of China, Bank of East Asia, Hang Seng Bank and HSBC and Deloitte Touche Tohmatsu. The group will begin testing the solution, which, it said, will target cost reduction, increased transparency, real-time data updates and other benefits to the trade finance industry. The bank added that standardization will be critical to successful implementation of distributed ledger technology in the trade finance arena. The group’s next step will be to invite clients and intermediaries to join pilot testing of the solution.
