One of China’s leading state-owned banks will become the first lender to participate in a new blockchain platform in Hong Kong that aims to streamline paperwork procedures for property buyers.
The PropTech blockchain platform is a collaborative project between New World Development and the Hong Kong Applied Science and Technology Research Institute (ASTRI) that is scheduled for launch in April.
According to a report from The Standard Bank of China (Hong Kong) will be the first bank user of the platform, which employs distributed ledger technology to replace the paper work involved in sending authorised provisional agreements to lenders.
Hugh Chow, ASTRI chief executive, said that platform could save home buyers as much as eight hours when it comes to paperwork procedures such as executing provisional sales and purchase agreements and filing mortgage applications.
Akan Wong, director of sales and marketing at New World Development, said that the developers expect users of the blockchain platform to hit 4,000 in 2020.
The platform is currently scheduled for a series of security tests prior to its official launch in April, according to ASTRI director of secured system platforms Alan Cheung.
A report from the Hong Kong Monetary Authority estimates that blockchain technology could cut the operating costs of banks by anywhere between 15 and 60%.