World Leading Banks To Carry Out Transactions On Blockchain
More than a dozen of large banks worldwide, including HSBC and Standard Chartered, launched the eTrade Connect blockchain platform in Hong Kong to improve the efficiency of transnational money transactions, Reuters reports.
The representatives of the London bank HSBC, focusing on the financial markets of Asia, stated that the eTrade platform helped to reduce the time for processing credit applications to several hours, despite the fact that it usually took up to thirty-six hours.
The Hong Kong Monetary Authority, which plays the role of the country's central bank, the Agricultural Bank of China, and BNP Paribas were among other banks involved in the creation of the platform.
In 2017, the cost of remittances amounted to more than $9 trillion, given that this sphere is built on manual handling of documents, and the process has not changed for decades and even centuries. Blockchain will help banking consortia to optimize financial procedures.
The platform developers believe that DLT will reduce the risk of fraud in the issuance of letters of credit and the number of stages in the delivery of other payment procedures.
The HSBC representatives stated that the first executed, conducted, and confirmed money transfers on the eTrade blockchain platform were associated with the goods supply of the Pricerite retailer. eTrade will allegedly be compatible with We.Trade, the European blockchain platform, which HSBC, as well as Deutsche Bank and UBS, uses in its work.
As previously reported, more than 75 banks worldwide will use the blockchain payment system from JPMorgan Chase.