The blockchain-based forfaiting trading platform launched by a line of Chinese banks has reportedly processed over 20 billion yuan ($2.8 billion) in trading volume in less than one year since its rollout last year.

The initiative, launched by China CITIC Bank in collaboration with Bank of China and China Minsheng Bank in September 2018, has become the largest blockchain-powered trade and finance platform in the domestic banking industry, with more than 30 banking institutions having joined or intending to participate in it.

At present, the offline forfaiting agreement needs to be signed by banks in pairs, and the formalities are relatively complicated. The recent platform update after almost one-year operation enables the platform to provide the solution of online signing between banks, simplifying the procedures and attracting more banks to join.

The main benefit of the platform is to automate connections based on its distributed framework to reduce phone and email communications. It includes identity authentication and asset verification as well as an intelligent credit rating system. The aim is to standardize transactions that could stabilize market prices and result in cost savings.

From the initial private chain to consortium, from simple bookkeeping to financing transactions, the application of blockchain in the banking industry has gradually helped form a huge application scene for the finance industry and attracted the active participation of domestic banks.

Apart from the finance industry, the speed and effort of Chinese companies from different businesses in embracing the blockchain technology over these years are startling, with the country leading the world in the number of blockchain patent applications (accounting for 67% of the world’s total in H1 2019). According to a report by Big Four audit and consulting firm Deloitte released this June, as much as 73% of Chinese enterprises believe that blockchain is a top-five strategic priority.

The country has reached a consensus on the importance of blockchain. The country’s Ministry of Industry and Information Technology (MIIT) today posted an article encouraging enterprises and institutions to actively participate in the development of blockchain technology and other key technologies; People’s Daily, the Chinese Communist party’s flagship newspaper, later the day released a report summarizing the country’s blockchain policies and trend analysis.