Global Trade Connectivity Network (GTCN)
The GTCN is a strategic joint innovation project by MAS and the Hong Kong Monetary Authority (HKMA). It is a cross-border infrastructure based on Distributed Ledger Technology (DLT) and seeks to digitalise trade and trade finance between the two cities for a start. Over time, the aim is to expand the network to the region and the globe.
"The GTCN is going to remove the inefficiency and risks of fraud inherent in the existing paper-based system in trade finance.
Once implemented, the interface, likely to be the first of this kind in the world, has been designed with an open architecture that would allow Hong Kong's other trading partners to plug into it in future."
Norman Chan, Chief Executive, Hong Kong Monetary Authority
Singapore and Hong Kong launch a joint project on cross-border trade and trade finance platform
Singapore and Hong Kong launch a joint project on cross-border trade and trade finance platform
Key Benefits of GTCN
Mitigation of Duplicate Invoice Financing
GTCN will be able to mitigate duplicate invoice financing through the establishment of a blockchain-based central ledger where transactions would be stored and referenced against.
End-to-end Digitalization of Trade Finance
GTCN will facilitate end-to-end digitalization of trade and trade finance processes across borders.
Increased interoperability across platforms
Built on Distributed Ledger Technology (DLT), GTCN allows different industry initiatives to interoperate and take advantage of the innate properties of DLT to establish trust across the trade and trade finance platforms.