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SoftBank-Backed OneConnect Financial Technology to Work on Blockchain Platform Development

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SoftBank-backed OneConnect Financial Technology has joined the China Merchants Port Group (CMPort) to build a blockchain-based platform logistics system.A SoftBank-supported fintech firm OneConnect is set to develop a blockchain-based platform. Sources say that OneConnect Financial Technology is to develop a logistics system for the Guandong-Hong Kong-Macau region within the joint program with the China Merchants Port Group. OneConnect Financial Technology is the fintech arm of top Chinese firm Ping An Insurance. OneConnect to Develop Comprehensive Blockchain-Powered Logistics SystemSources say that the logistics system is to aid customs and transportation procedures. Xiaoying Chen who is the Shenzen head of customs said:“Since the central government’s directive to develop blockchain

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SoftBank-backed OneConnect Financial Technology has joined the China Merchants Port Group (CMPort) to build a blockchain-based platform logistics system.

A SoftBank-supported fintech firm OneConnect is set to develop a blockchain-based platform. Sources say that OneConnect Financial Technology is to develop a logistics system for the Guandong-Hong Kong-Macau region within the joint program with the China Merchants Port Group. OneConnect Financial Technology is the fintech arm of top Chinese firm Ping An Insurance. 

OneConnect to Develop Comprehensive Blockchain-Powered Logistics System

Sources say that the logistics system is to aid customs and transportation procedures. Xiaoying Chen who is the Shenzen head of customs said:

“Since the central government’s directive to develop blockchain technology from last year, Shenzhen customs, China Merchants Group and Ping An have started to work together to study blockchain applications in cross-border logistics.” 

The blockchain solution will enable seamless integration. All services will now be able to share information with fewer hitches. 

Information from the different parties across the board will be involved. Port authorities, Customs, financial institutions, trade companies (import and export) will be able to share resources. 

The ultimate goal is to implement a tracking system that is efficient at the least cost.

About five different databases will now occur on the blockchain. They include Contracts, logistics, goods, trade companies, and documentation. Sources say that financial services will be available to trade companies as well. 

Blockchain Logistics Systems Have Several Advantages

There are several advantages to be gained from the implementation of the system. 

The areas are in the heart of the Chinese industrial hub. Having a blockchain-based information system will increase the security of trade information. many companies need to have their data secured.

We live In a day and age where financial and payment information can be compromised. Blockchain solutions are decidedly more effective at security than legacy systems. 

The cost of implementation and maintenance of blockchain systems is lower than the cost of implementing legacy systems. Blockchain systems as per logistics are redundant. They offer higher advantages when it comes to scalability than legacy systems. 

The new generations of blockchain systems are faster and more adaptable. They create the best conditions for international trade. Smart contracts can help provide a backbone for documentation.

This comes at a time when the Chinese have gone ahead of everybody and are implementing blockchain solutions. It also serves as a solution to the ever-increasing need for upgrades for legacy systems. 

Let us remind you that OneConnect has gone through a Series A funding round with SoftBank leading the process. The firm was valued then at about $7.5 billion. OneConnect went public in December 2019. Its IPO raised about $359 million with a valuation of about $3.5 billion. 

Blockchain, News
Christopher Hamman
Author: Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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