Major Hong Kong Lenders Plot Blockchain Mortgage System Launch

A group of banks in Hong Kong are reportedly developing a system that uses blockchain tech to share information about mortgage valuations.

AccessTimeIconOct 18, 2016 at 7:22 p.m. UTC
Updated Sep 11, 2021 at 12:34 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

A group of banks in Hong Kong are reportedly developing a system that uses blockchain tech to share information about mortgage valuations.

According to The Financial Times, the system is being tested by Bank of China and HSBC among a group of lenders in the region. If fully realized, the system will include participants from mortgage lenders in Hong Kong as well as surveyors, who will contribute valuation data.

Involved in the testing of the system are the Hong Kong Monetary Authority and the Hong Kong Applied Science and Technology Research Institute (ASTRI), which earlier this year co-established an innovation hub to support fintech experimentation. The trial is, perhaps, the most high-profile project of its kind to emerge from that effort to date.

The proposed mortgage valuation system is being tested within that framework, and according to FT will be integrated live inside the Bank of China's operations sometime next month.

The paper quoted ASTRI vice president Duncan Wong, who said of the project:

“The reason we focused on the property valuation is because there is less regulatory concern for this.”

As for the other banks looking to take part in the system, those institutions have reportedly begun preparing for an integrated at an as-yet-undisclosed date.

Image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.