Bank of China, CITIC, and Minsheng Bank Jointly Released a Full-Featured Blockchain Forfaiting Trading Platform
The “Blockchain Forfaiting Trading Platform” based on “Distributed Architecture, Full Link of Business On-Chain and Fully Automatic System Connection” designed and developed by Bank of China, China Minsheng Bank and China CITIC Bank was successfully launched and completed the first cross-bank asset trading on launch day. As of the date of publication, the platform transaction volume reached 30 million Yuan. This is another innovation in the banking industry's practical application of the extended blockchain technology after the launch of the first inter-bank “blockchain domestic letter of credit” project in June 2017.
The platform adopts the form of consortium chain. The blockchain infrastructure is constructed by Hangzhou Yunphant Network Technology Co., Ltd., and the three banks jointly developed it based on the current business processes of the industry, embodying the principles of equality, mutual trust and openness. The platform independently develops the blockchain application layer function according to the inter-bank transaction business scenarios. The system provides pre-inquiry for the Forfaiting business, inquiry after asset issued, multi-scenario business concurrency with capital quotes, and logical serial application service flow, which ensures the compatibility, versatility, flexibility and expandability of the system.
The platform effectively solves the four major problems of traditional inter-bank asset transactions by using blockchain, big data and other technical methodologies.
1. Solve the problem of distortion of transaction information in traditional information distribution channels such as telephone, mail, and WeChat. The platform ensures that asset information is true, unique and effective through key identity authentication, asset core element verification, and smart credit rating, which is conducive to standardizing transactions, stabilizing market prices, facilitating operations, and saving transaction costs.
2. Solve the imbalance of price matching and asset transaction. The platform integrates a series of links such as asset issue, capital quotation, offer invitation, and creditor's rights transfer, and realizes “one-stop” service, effectively avoiding the delay of transaction after the intention is reached, maximizing the reduction of transaction costs and improving financing efficiency.
3. Solve the disunion of multi-agent transaction standards. The platform unifies and standardizes the transaction of core data before it goes on chain. Through intelligent contracts, consensus mechanisms, distributed databases, and Business Point custom development, under the premise of seeking common ground while reserving differences, the core transaction links are highly consistent, greatly reducing the “invalid friction” between texts, elements, and process matching between multiple trading entities, making the platform a “lubricant” for Forfaiting transactions across banks.
4. Solve the problem of trading staff workload and high cost of confidentiality. The platform has a high degree of digitization, and its blockchain structure, multi-node storage, state recourse, data sharing, uniqueness and non-tamperability, and high encryption security are all advantages, which make the above problems easier to be solved.
The future is here. The successful launch of the “Blockchain Forfaiting Trading Platform” is the full exploitation and empowerment of technological innovations in the cross-bank transaction scenario, which will effectively reshape the cross-bank asset trading process and greatly improve the efficiency and security of asset transactions, promoting the high quality and efficiency development of the whole industry, and ultimately optimizing the customer experience and reflecting the purpose of finance services real economy.
Adhering to the concept of innovation, equality, mutual trust and win-win, Bank of China, China CITIC Bank and China Minsheng Bank will work together and work with more peers to continue focusing on financial business innovation to jointly contribute to the ecological development of the industry.
