Banks join Singapore-Hong Kong Blockchain trading network

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It is expected that by early 2019 the new network will include the participation of more than 20 global banks and financial institutions, according to the Business Times report. The announcement of new members of the project was made during the Singapore Fintech Festival on Thursday.

The proof-of-concept, called the Hong Kong Trade Financial Platform (HKTFP), is the cooperation between the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS), whose goal is to digitize trade finance using distributed ledger technology (DLT).

According to the officials of the two monetary authorities, the DLT pilot, described as the "global trade connectivity network" (GTCN), is expected to set "new global standards" for the industry and aims to track global trade flows between Singapore and Hong Kong.

Executive director of HKMA, Li Shu-Pui, said that bankers have been concerns about the confidentiality of data and transactions. As a result, regulators should consider regulations around the DLT, he said, as that is a new form of innovation in "critical" areas of trade financing.

Lee indicated that he also expects European financial institutions to participate in the project as it moves forward.