Crypto: Hong Kong, Shanghai Authorities To Test Blockchain For Cargo Trade...

The Hong Kong Monetary Authority and Shanghai partners will study a blockchain cross-border platform linking cargo trade data, e-bills of lading and finance under Project Ensemble.

Hong Kong and Shanghai authorities have agreed to deepen cooperation on using blockchain technology to streamline trade finance and cargo documentation, under a new partnership announced Monday.

The Hong Kong Monetary Authority (HKMA), the Shanghai Data Bureau (SDB) and the National Technology Innovation Center for Blockchain (NTICBC) have signed a memorandum of understanding (MoU) to deepen collaboration in digitizing cargo trade and finance.

The parties will conduct joint research on the benefits of developing a blockchain-based “cross-border platform” for interlinking trade data, electronic bill of lading and financial applications under the HKMA’s Project Ensemble, an initiative launched in 2024 to explore tokenized market infrastructure and new digital rails for financial services.

The project will use the HKMA’s blockchain-based financial data infrastructure, the Commercial Data Interchange, to explore trade finance using cargo and commercial data. The HKMA launched the CDI in 2022 to enable institutional access to corporate data to streamline lending.

The partners also plan to draw on Project CargoX, an HKMA initiative built on the CDI, to strengthen trade data capabilities for financing and related services.

Related: Hong Kong to link new digital bond platform with regional tokenization hubs

Howard Lee, deputy chief executive of the HKMA, described the MoU as an “important milestone” for digital innovation cooperation between Hong Kong and Shanghai. He said the agencies aim to promote new digital applications in cargo trade and finance and explore infrastructure that can link the two cities.

The director of SDB, Shao Jun, said that the partnership marks a significant step toward its commitment to foster “data-powered and innovation-driven development, striving to establish a secure, efficient, and open digital infrastructure.”

In a separate policy track, Hong Kong is also taking steps to make its tax concessions more attractive to investment funds and family offices by expanding qualifying investments to include digital assets.

Source: CoinTelegraph