- eTrade Connect is aimed at revolutionizing the global trade finance network worth roughly $9 trillion
- The participating banks plan to replace their existing paper-based processes with distributed ledger technology (DLT)
- HSBC says eTrade Connect has helped it slash its loan approval time from nearly two days to only four hours
Five highly reputed financial institutions across the globe, including HSBC of London, Standard Chartered of London, Agricultural Bank of China, BNP Paribas of Paris, and the Hong Kong Monetary Authority are integrating eTrade Connect blockchain solution powered by Hyperledger Fabric, to simplify transactions and foster efficiency, reported Finance Magnates on November 1, 2018.
More Banks Integrate DLT
Per sources close to the matter, a conglomeration of banks has integrated a blockchain solution called eTrade Connect into their operations to enhance trade and foster efficiency.
The participating banks which include HSBC of London, Standard Chartered of London, Agricultural Bank of China, Beijing, BNP Paribas of Paris and the Hong Kong Monetary Authority, are now using eTrade Connect to automate their processes, reducing paperwork, increasing security and productivity.
According to the team, the eTrade Connect distributed ledger technology solution has been in the works since July this year, and it is based on Hyperledger Fabric, a DLT framework from the stables of Linux Foundation.
eTrade Connect To Modernise Global Finance System Via Blockchain Technology
Despite the inherent potentials of blockchain technology, the traditional finance world is yet to fully embrace it because of its relatively nascent nature.
Hence, large financial institutions still carry out much of their operations manually.
According to Finance Magnates, citing a survey recently commissioned by the Asian Development Bank, at least $1.5 trillion worth of trade finance requests are not fulfilled each year due to the inefficient systems of these institutions.
With eTrade Connect, the world’s trade finance network which was valued at $9 trillion last year will be revolutionised, and most of the paper-based processes will be automated and replaced with blockchain technology, making the entire ecosystem more secure, transparent and efficient.
Additionally, eTrade will drastically reduce the incidence of fraud in the trade finance industry as the number of steps required to complete each transaction is slashed to the minimum, thereby shutting down all avenues for misappropriation of funds.
Interestingly, HSBC, which is one of the participating banks has reportedly revealed that eTrade Connect has cut down its loan approval time to just four hours from nearly two days.
“Blockchain has transformed a cumbersome, complex process into a simpler but more secure and efficient way of conducting trade,” said the chairman of HSBC, Bankee Kwan.
Blockchain technology is helping forward-thinking organisations across to become more productive.
As reported by Blockchain Reporter on November 1, 2018, Nasdaq joined forces with Microsoft to launch DLT a solution for the financial markets.