PETALING JAYA: Zetrix, a public blockchain platform developed by MyEG Services Bhd, has commenced a pilot project to offer supply chain financing products in conjunction with Chinese banks for international importers and exporters.
Starting with the Bank of China as the first financial institution to be onboarded under the project, the end-to-end solution offers a soft landing for trading firms with fully digital onboarding, including registration of a Chinese legal entity, bank account opening and credit assessments. Approved clients will enjoy low-cost financing and quicker release of drawdowns as the service leverages on-chain events recorded and verified on Zetrix.
China has undergone rapid digital transformation in recent years, with most services, including financial services, now being delivered online and capitalising on the advantages of blockchain technology. China is a world leader in blockchain adoption, and the government is actively supporting the development of the blockchain industry.
Zetrix is a public blockchain network that also hosts the international supernode of China’s national blockchain, Xinghuo Blockchain Infrastructure and Facilities (Xinghuo BIF). It is focused on enabling global trade through its connection to Xinghuo BIF. Zetrix provides users with access to a secure and reliable blockchain platform that is endorsed by the Chinese government.
Zetrix’s commitment to localisation is cemented by its partnership with Dixchain, Dixchain is a national-level high-tech enterprise in China that integrates financial technology and financial services, focusing on providing comprehensive digital solutions for global cross-border trade and finance.
“This is a game changer on several fronts. By tracking and verifying the transactions onchain, banks will be able to reduce their risks and enhance their ESG ratings, hence, in turn, reducing the overall cost of financing for end-users. Trading companies can also leverage on the interest rate differentials their respective countries, as well as widen their financing options,” explained Zetrix founder TS Wong in a statement.
The pilot will provide more efficient and convenient cross-border financial services for trading enterprises, introduce lower cost overseas yuan funds, help enterprises to obtain lower cost financing, and increase cross-border trade transaction volume.
