Zetrix, developed by MyEG Services Berhad (MyEg), a pilot project to offer supply chain financing products with Chinese banks for international importers and exporters will starts today (Nov 3).
The company said the project will start off with the Bank of China as the first financial institution, offering end-to-end solution for a soft landing for trading firms with fully digital onboarding, including registration of a Chinese legal entity, bank account opening and credit assessments.
“Approved clients will enjoy low-cost financing and quicker release of drawdowns as the service leverages on-chain events recorded and verified on Zetrix,” it said in a statement today.
The pilot will provide more efficient and convenient cross-border financial services for trading enterprises, introduce lower cost overseas RMB funds, help enterprises to obtain lower cost financing, and increase cross-border trade transaction volume, the company added.
Zetrix founder TS Wong said this a game changer on several fronts.
“By tracking and verifying the transactions onchain, banks will be able to reduce their risks and enhance their ESG ratings, hence, in turn, reducing the overall cost of financing for end-users.
“Trading companies can also leverage on the interest rate differentials their respective countries, as well as widen their financing options,” he said.
China is a world leader in blockchain adoption, and the government is actively supporting the development of the blockchain industry.
The cross-border and cross-chain integration with China enables Zetrix to serve as a blockchain gateway that facilitates global trade by deploying critical building blocks for Web3 services such as blockchain-based identifiers (BID) and verifiable credentials (VC).
The company said Zetrix also hosts the international supernode of China’s national blockchain, Xinghuo Blockchain Infrastructure and Facilities (Xinghuo BIF).
It is focused on enabling global trade through its connection to Xinghuo BIF and provides users with access to a secure and reliable blockchain platform that is endorsed by the Chinese government.
The blockchain platform operator said it also partners with China’s Dixchain, a high-tech enterprise in financial technology space, to provide comprehensive digital solutions for global cross-border trade and finance.
