China Construction Bank, one of the largest Chinese commercial banks, has expanded its platform blockchain trade finance with new skills, including cross-chain and interbank transactions, as trading volume exceeds $ 53 billion.
Speaking in Beijing at the official launch of the updated platform BCTrade2.0, CCB Vice President Ji Zhihong said the new platform will leverage the blockchain technology to provide better financial services for Chinese exporters, according to a report in the Chinese media.
Launched in April 2018, the platform has to date on transactions processed $ 53.5 billion among exporters, banks and non-bank financial institutions, he said.
The platform offers factoring and forfaiting services that enable exporters to obtain cash immediately by selling its medium and long-term receivables at a discount price.
function cross-chain of the new feature will allow 54 national and international bank branches to process transactions with each other, as well as 40 other banking institutions, including both state and foreign banks, commercial banks and non-bank platforms.
The bank has appointed its subsidiary Jianxin Financial Services, capitalized with $ 230 million to operate and maintain the new platform. The Fintech Shanghai-based company was founded in April by subsidiaries of the bank, according to the State Administration for Industry and Commerce.
The launch is the latest effort by the bank to increase the efficiency of its banking system to finance export trade with blockchain technology. blockchain based debut through a factoring operation in January 2018, according to a company statement trade was completed.
“The measure is in line with China’s economic plan to promote trade amid Initiative Route One Belt One and help the growth of the real economy in the country,” the bank said in the statement.
The four major commercial state-owned banks in China – CCB, the Industrial and Commercial Bank of China, Bank of China and Agricultural Bank of China – have launched initiatives in financial services based in blockchain in the last two years.
ICBC, the world’s largest bank by assets, has used its funding platform blockchain online to help small and medium enterprises with factoring operations. The bank met with 1,300 users $ 6.4 billion transactions in the first nine months since its launch in February, according to a bank statement.
Bank of China processes its first international money transfer to South Korea in dollars through its system patented blockchain last August payment, while the Agricultural Bank of China helped farmers to trade online using blockchain financing system e-commerce in August 2017.
The Chinese central bank began operating the Platform Trade Finance Blockchain Bay Area last September to help small and medium-sized enterprises to finance in the areas between Hong Kong, Macao and Guangdong Province in southern China.
China Construction Bank image via CoinDesk Archive