Taiwanese liner operators Yang Ming Marine Transport and Evergreen Marine Corporation have joined their country's first financial blockchain platform.
On 23 September, Cathay Financial Holdings and its affiliate Cathay United Bank launched Global Trade Sharing Blockchain. Seven other banks have also joined this platform, which aims to stamp out fraud through block encryption, which can prevent rogue businesses from duplicating financing for the same transactions across banks.
Recent fraud cases involving duplicated financing for the same transactions have been uncovered from the collapses of commodity traders like Hin Leong Trading and Zenrock Commodities.
Yang Ming and Evergreen have pledged to share information pertaining to bills of lading with the blockchain platform. UK-based Bolero International, which provides electronic bills of lading, and Taiwanese software maker SmartBee Intelligence, which provides logistics supply chain management systems, are also in discussions to join the platform.
Cathay United Bank general manager, Lee Wei Cheng said that while imports and exports are Taiwan's economic lifeblood, the Covid-19 pandemic heightens the risks of fraudulent trade.
Taiwan's exports have grown at 30% annually and exceeded US$280 billion in the first eight months of the year, according to the country's Ministry of Finance.
Global Trade Sharing Blockchain is therefore introducing blockchain and digital processes into the current trade finance operations, to minimise the risks arising from the inequity of information among financial institutions.
Lee noted, "Cathay United Bank will continue to promote peer and cross-industry cooperation, expand the acquisition of data sources, use digital services to accelerate data sharing, improve the operational efficiency and risk control capabilities of financial institutions."