Xiamen in Fujian province was recently approved as a pilot city for the application of a cross-border financial blockchain service platform, local media reported.

Earlier this year, China's State Foreign Exchange Administration built the service platform to alleviate the financing problems encountered by small and medium sized enterprises in cross-border trade.

For traditional export trade financing, banks handle financing businesses based on paper documents provided by applicant companies. It is difficult to verify the documents' authenticity and increases costs for companies.

However, the service platform uses the latest blockchain technology to integrate all the export declaration data and supervise the movement of cargo, information and capital of exported companies in pilot cities, which perfectly solves these problems.

A total of 10 banks in Xiamen have been allowed to take part in the pilot, dealing with two businesses: export account receivable financing (after delivery) and the authorized verification of enterprises' cross-border credit information.

On July 10, one of the 10 banks in Xiamen, the Jimei district branch of the Industrial and Commercial Bank of China, handled financial business for a local company and was able to make a decision to give the company $1.45 million in capital in just 10 minutes.

Moving forward, Xiamen will offer more convenient financing services with the help of the cross-border financial blockchain service platform to boost the development of its real economy.

The Xiamen branch of China's State Foreign Exchange Administration introduces the cross-border financial blockchain service platform to staff members of the 10 pilot banks in the city. [Photo/taihainet.com]