The monetary authority of Hong Kong (HKMA) announced its intention to develop a cross-border system of trade financing on the basis of the DLT. The main partner of the project will be the Office for the supervision of financial services (FSRA) of the free economic zone in Abu Dhabi.
Yesterday the parties have signed a relevant bilateral cooperation agreement. According to the document, we are talking about several initiatives focused on innovative use of distributed registers in trade Finance.
Nelson Cho (Nelson Chow), the principal officer of the HKMA on issues of financial technologies, commented on the announcement of the agreement:
“We are very pleased to begin negotiations with the FSRA on the creation of an international network of trade Finance with the use of technology of distributed registries”.
The HKMA has not said what kind of platform is going to use within the joint work with the FSRA. Presumably, the financial Supervisory body of Abu Dhabi will join the fine-tuning Hong Kong Trade Finance Platform — experimental registry of the HKMA and the Monetary authority of Singapore (MAS). The Singapore government in March announced its intention to conduct project activities in this direction, however, the representatives of the MAS dealt with the alleged partnership with the HKMA.
For the HKMA cooperation with Abu Dhabi is an opportunity to strengthen working relationships of the city with the UAE. Recall that in September last year the Commission on securities and futures (SFC) of Hong Kong has signed a similar agreement with the Office for financial services, Dubai (DFSA).
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