Singapore and Hong Kong are expecting 20 global banks to join their cross-border trade and trade finance platform

The Monetary Authority of Singapore (MAS) and Hong Kong Monetary Authority (HKMA) are expecting as many as 20 global banks to join the world’s first blockchain-powered trade network announced earlier this week, The Business Times has reported.

A memorandum of understanding for the global trade connectivity network (GTCN) was exchanged at the 2017 Singapore FinTech Festival on Nov 15 “to digitalise trade and trade finance between the two cities and potentially with an aim to expanding the network in the region and globally,” MAS said.

The aim of the landmark partnership between the longtime economic rivals is to make cross-border trade and financing cheaper, safer, and more efficient, through an information highway built using distributed ledger technology between the National Trade Platform in Singapore and the Hong Kong Trade Finance Platform.

To start, a joint working committee comprising MAS, HKMA, the National Trade Platform Programme Office (Singapore) and Hong Kong Interbank Clearing Limited will lead the project.

There are plans to also invite other markets to participate after a governance structure and implementation plan have been finalised.