GSBN uses Blockchain to share shipping data with financial institutions
Within 20 minutes, the Global Shipping Business Network (GSBN) is able to conduct a pilot transaction to unify the consent collection and sharing of shipping data using a blockchain-powered application, increasing transaction speed.
As an independent and not-for-profit blockchain consortium founded by major global terminal operators and shipping lines, GSBN seeks to improve trade finance access, especially for SMEs, through its blockchain-enabled data sharing management application.
According to the announcement:
“By providing banks with reliable shipping data, the consortium’s solution aims to ease the approval process and make trade finance more accessible to businesses.”
GSBN CEO Bertrand Chen believed that the pilot transaction painted a positive image in the trade finance arena, saying:
“This pilot solves a major bottleneck in the industry and is a testament to the effectiveness of the network in enabling reliable data sharing.”
He added:
“Trade finance is the lifeblood of global trade and we hope this milestone can further break down the silos between market participants and financial institutions to the benefit of all parties while supporting the overall growth of the industry.”
The statement reads that financial institutions can enjoy access to a basket of reliable and immutable shipping data in a standardized and structured format. In addition, financial institutions can benefit from accurate and complete shipping data to make informed decisions and better manage risk with higher visibility.
By sharing data in a structured format, and the basis for automated control that can reduce approval time from days to minutes.
Therefore, this partnership has become an industry-first milestone in the global trade finance sector.
The pilot transaction was carried out in cooperation with A & W Food Service (Hong Kong) Ltd, Hapag-Lloyd and Bank of China (Hong Kong) (“BOCHK”).
GSBN sees blockchain technology as a stepping stone towards bridging the gap in the global trade finance space, which is estimated to cost $2.5 trillion by 2025.
James Ho, Deputy Managing Director of the Transaction Banking Department at BOCHK, pointed out:
“BOCHK has been a long-term partner of GSBN, striving to help bridge the trade finance gap. We are very proud to be one of the pioneers completing this pilot transaction and contributing to the global economy by making trade finance more accessible to businesses , especially for SMEs.
Meanwhile, India’s largest shipping port operator Adani Ports and Special Economic Zone (APSEZ) adopted a blockchain-based platform jointly developed by IBM and Maersk to improve verifiability, Blockchain.News reported.
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