Chinese ports to adopt US blockchain solution
US blockchain technology company Ideanomics has entered into a joint venture with Asia-Pacific Model Electronic Port Network (APMEN) Trade Tech focusing on supply chain solutions for major Chinese ports.
The blockchain-based solution will be applied to the Asia-Pacific Economic Cooperation’s (APEC) online port clearance system, initially at the Chinese ports of Guangzhou and Shanghai.
Ideanomics claims blockchain technology can streamline port clearance and shipping, cutting out “layers of middlemen.” It promises to improve the efficiency of customs clearance and allow consumers to track the origin of cross-border goods.
“We will integrate business data from various partners, establishing a risk control model in cooperation with a single window to provide risk control services for regulatory authorities and enterprises,” said Bruno Wu, co-chief executive of Ideanomics.
APEC’s online port clearance system was established in 2014 to promote the development of model e-port across APEC economies and enhance connectivity among cargo hubs in the Asia-Pacific.
The joint venture will build and install Ideanomics’ supply chain finance blockchain, with the duo hoping to bring banks and financial institutions as lenders and customers together. Middlemen currently result in interest rates as high as 20%, according to Ideanomics.
Buyers and sellers should ultimately see their warehouses connected directly through the Ideanomics platform.
The joint venture will also seek asset-backed securitization opportunities through Ideanomics’ global sales network, including both traditional and blockchain-based solutions of securitization, fractionalization and tokenization.
Ideanomics will have a majority interest of 60% in the joint venture.