Bank of China and HSBC test blockchain system for sharing mortgage valuation information

A group of banks from Hong Kong, China are reportedly developing a system that would use blockchain technology to share information about mortgage valuations.

The system is being tested by Bank of China and HSBC, as well as other leaders in the region, and if successful, it would include mortgage lenders from Hong Kong and appraisal agencies that contribute valuation data, according to the Financial Times.

The system is being tested by the Hong Kong Monetary Authority and the Hong Kong Applied Science and Technology Research Institute (ASTRI), which earlier this year jointly established an innovation center to support financial technology experiments. The trial is perhaps their most notable work in the blockchain field to date.

According to the Financial Times, the proposed mortgage valuation system is being tested within the framework and will be integrated into Chinese banks' operations sometime next month.

ASTRI Vice President Duncan Wong said about the project:

“ The reason we focus on property valuation is because there are fewer regulatory issues in this area.”

As for other banks that want to participate in the system, these institutions have reportedly begun preparations to integrate the system at some point in the future.