What are the blockchain products of Minsheng Bank?

On August 3, 2021, the relevant person in charge of the Information Technology Department of Minsheng Bank stated that at present, Minsheng Bank has built a “blockchain open service platform”, “blockchain trade finance platform”, and “blockchain electronic deposit certificate service platform.” “Three platforms.

Minsheng Bank is an early domestic enterprise that developed blockchain technology applications. It is the first group of members to join the R3 Blockchain Alliance in China. In addition to the creation of blockchain products, it also actively participates in the “Financial Blockchain Application Evaluation Rules”, “Financial Blockchain Reference Architecture”, and “Digital Financing Technical Specifications” 》And other industry standards and norms drafting work.

The three major platforms announced this time, “Blockchain Open Service Platform,” “Blockchain Trade Finance Platform,” and “Blockchain Electronic Deposit Service Platform”, have a more comprehensive framework than the previous products announced by China Minsheng Bank. Let’s look at them separately.

Blockchain Open Service Platform (BaaS): It creates a service foundation with high performance, high convenience, easy expansion, strong security, and strong compatibility for blockchain application services. The platform is based on an autonomous and controllable underlying construction, supports a variety of heterogeneous chain underlyings, and meets the needs of external blockchain industry cooperation. It provides a fully functional and easy-to-operate visualization platform for monitoring operations, supports regular data backup and intelligent archiving, and can effectively solve the problems of high operating costs, high maintenance thresholds, and slow failure repairs of the blockchain platform.

Up to now, the BaaS platform has supported more than 10 application scenarios such as letter of credit, forfaiting, judicial deposit, eKYC, electronic letter of evidence, stock pledge, online financing, etc., linking corporate customers, inter-bank institutions, industry associations, courts, etc. Partners in the digital industry.

Blockchain electronic deposit certificate service platform: By connecting with the Beijing Internet Court, Fangyuan Notary Office and other party committees, the two ecologically efficient and safe links of “finance + justice” have been realized.

The platform has opened up the platform and electronic channel platform system for the business in the industry, and generates digital fingerprints for the real-time processing of business data, and uploads the digital fingerprints to the chain for certification. According to the traceability management requirements of the regulatory agency, the platform also forms a user operation traceability video through self-developed traceable components under the premise of user authorization, and the video is processed on the chain after the above-mentioned certification processing, so that the business operation has ” Double guarantee of legality and compliance.

At present, the platform has accumulated more than 10 million blockchain electronic evidences, and its business scenarios cover multiple online scenarios such as loans, funds, wealth management, sales, etc., escorting the legal compliance of online businesses during the digital transformation of banks.

Blockchain trade financial service platform: jointly developed by China Minsheng Bank, Bank of China and China CITIC Bank, covering two business scenarios of domestic letter of credit information transmission and forfaiting secondary market transactions. It is blockchain technology in domestic banking trade financing The first application in the field.

The platform has become an inter-institutional financial system integrating asset release, fund quotation, transaction matching, inquiry management, etc., which solves the traditional inter-bank asset transaction distortion of transaction information, the disconnection of transaction matching and delivery, inconsistent multi-agent standards, and business Industry pain points such as complex operations have reshaped the inter-bank asset transaction process, greatly improved transaction efficiency and security, and effectively promoted the high-quality development of the industry.

At present, the blockchain trade finance alliance platform has more than 40 banks joined, and the transaction scale on the chain has exceeded 500 billion yuan, making it the largest blockchain trade finance platform in the domestic banking industry. In July 2020, the Central Clearing Center of the People’s Bank of China and these three banks formally signed a blockchain forfaiting trading platform cooperation agreement.

Compared with the comprehensive announcement this time, Minsheng Bank only announced three directions before. The domestic letter of credit system (BCLC), forfaiting transaction (BCFT), and trade finance system show that more complete business classification and planning have been carried out. Today, the trade finance system has been updated to an open technology platform, and letters of credit and forfaiting are independent functions in the trade finance system.

The following is the previously announced content. It is convenient for us to understand the letter of credit and forfaiting.

Blockchain-based domestic letter of credit system (BCLC)

Letter of credit refers to a written certificate issued by the bank to the exporter (seller) to guarantee the payment of the goods at the request of the importer (buyer).

Traditional letter of credit business has the following characteristics;

Low efficiency: The original letter of credit and documents are delivered by mail, which is costly and time-consuming;

Irregularity: The elements and styles are not uniform, and they often circulate in the industry;

Involuntary: Need to send a confirmation call through SWIFT, but SWIFT does not support Chinese;

Many risks: Relying solely on the credit of enterprises and banks, it is prone to disputes of refusal to pay;

Weak trust: paper letters of credit are not easy to save and easy to forge;

BCLC is implemented based on the Fabric 1.0 consortium chain, data is uploaded through the front gateway (golang), data attachments are hashed on the chain, and files are transmitted through the p2p network. It can be shared by all organizations, and business data can be stored in JSON format, which can be queried offline later.

Blockchain-based Forfaiting Transaction (BCFT)

Forfaiting is a type of export credit. Forfaiting is directly related to the letter of credit. Forfaiting is to conditionally transfer the bonds formed by the letter of credit.

In the traditional forfaiting field, when everyone transfers creditor’s rights, inquiries and quotations basically rely on telephone and WeChat channels for communication, which is very inefficient. Due to the lack of a unified quotation channel, the cycle for asset purchase and sale is also very long. And it is easy to cause the quotation to be affected by factors such as location, time, and customer relationship.

Due to the opacity of information, the authenticity of the basic transaction background is at risk, and it is completely dependent on the issuing bank’s investigation of the trading background. Moreover, the default cost of forfaiting transfer is very low, and an effective credit market has not been established.

Minsheng Bank puts the forfaiting transaction industry on the blockchain. Compared with the letter of credit, it has added a new buyer’s identity. The buyer can be a bank or any financial company that is qualified to purchase such assets. Institutions realize quotation, inquiry, and even asset release through the blockchain, thus forming a complete closed loop from letter of credit to asset purchase and credit transfer. In the future, there can be more attempts in secondary asset transfer and asset splitting.

 

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