Bank of Shanghai issues first blockchain-based letter of credit in China

On May 22, Bank of Shanghai and Jiangsu Hoperun Software signed a blockchain strategic cooperation agreement, and the blockchain platform jointly built by both parties was inaugurated at the same time.

On May 22, Bank of Shanghai and Jiangsu Hoperun Software signed a blockchain strategic cooperation agreement, and the blockchain platform jointly built by both parties was inaugurated at the same time.

On the same day, Bank of Shanghai and China Construction Bank also signed a blockchain cooperation agreement and issued the first blockchain letter of credit operated on a third-party platform in China.

Unlike the traditional way of issuing letters of credit, the issuance of a blockchain-based letter of credit is based on block chain cryptography and consensus mechanism, which stored all kinds of paper certificates, contracts, invoices, customs declarations and other information involved in issuing letters of credit on behalf of others, so that these types of information cannot be tampered with.

This year, Bank of Shanghai will focus on supply chain finance as one of its priorities. Based on the establishment of an online platform and the application of technologies such as blockchain and big data, the bank will build a “cooperative, open and win-win” supply chain finance service system, solve the financing constraints of the small and medium enterprises (SMEs), and fulfill the social responsibilities of financial institutions.

As a listed enterprise of software services in the Chinese financial industry, Hoperun Software has rich software-development experience and product system in the blockchain field.

The blockchain platform co-built by Bank of Shanghai and Hoperun Software will give full play to the advantages of both sides in different fields and accelerate the pace of supply chain finance innovation.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/05/bank-of-shanghai-issues-first-blockchain-based-letter-of-credit-in-china/.

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