Hong Kong has developed a joint proof-of-concept project which could see Blockchain revolutionize trade finance.

The Hong Kong Monetary Authority (HKMA), Deloitte and five banks including HSBC were behind the initiative, which began in December and concluded earlier this month, the South China Morning Post reports.

“This development puts Hong Kong at the heart of a global effort to digitize trade, making it easier, faster and cheaper for businesses,” HSBC senior product manager for global trade and receivables finance Joshua Kroeker told the publication.

Blockchain in global trade is principally concerned with reducing weak links and inefficiency, for example, paperwork, security and accounting errors.

Kroeker explained:

“As the largest trade finance bank in the world ... we were interested in assisting corporates to track transaction flows, reconcile transactions through invoice or purchase order matching and reducing the risk of duplicate financing for the participating banks.”

Figures from a local market analysis conducted in January on Blockchain speak for themselves. The technology could save eight out of ten of the world’s largest investment banking institutions up to $12 bln per year. This translates to around 30 percent of annual infrastructure costs.

Meanwhile, concerns were raised last month about Hong Kong’s competitiveness in fintech markets due to the uncertain situation regarding many of its legislative policies.