The China Banking Association (CBA) has launched a blockchain-based trade finance platform with the aim of improving the efficiency of Chinese trade finance.

A letter of credit (L/C) verification solution has already been successfully tested on the new platform.

Platform development

The China Trade Finance Inter-bank Trade Blockchain Platform officially commenced operations on 29 December according to a statement recently issued by the CBA.

The platform was developed by the association in conjunction with several leading Chinese lenders, including the China Development Bank, ICBC, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, China Everbright Bank, China CITIC Bank, China Minsheng Bank, Shanghai Pudong Development Bank, Pingan Bank, Postal Savings Bank of China and HSBC.

Positive L/C trials

More than ten banks have already completed two online tests of the platform while ICBC and China Merchants Bank completed the first inter-bank domestic L/C chain verification process following the platform's official launch.

According to the CBA the platform's goal is to create an entirely new trade finance ecosystem.

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