A. General Information
2. Status of the project
Pilot
3. Implementation period of the project/service:
5. Geographical coverage
Global
Participating countries: Hong Kong, China, Switzerland, United Kingdom of Great Britain and Northern Ireland
Hub Point: Hong Kong, China
6. Participating agencies/entities of the project/service:
a. Development stage
Lead agencies/entities
Bank of International Settlements, Linklogis International, Hong Kong Monetary Authority
Other participating agencies/entities
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b. Operational stage
Lead agencies/entities (op)
Bank of International Settlements, Linklogis International, Hong Kong Monetary Authority
Other participating agencies/entities (op)
Standard Chartered, RD Technologies, MioTech, Simmons & Simmons.
7. Main stakeholders/beneficiaries of the project
Other Government Agencies (OGAs)
8. Business process category of the project
Commercial Transactions
Payment
B. Lessons Learned
9. Summary description of the project/service
Brief Summary
Through extensive collaboration between the BIS innovation Hub and Linklogis, Project Dynamo delivered a prototype platform to enable programmable payments through digital trade tokens along supply chains to facilitate the provision of financing by institutional investors to SMEs.
a. Objective(s)
Project dynamo is new prototype developed as part of Project Dynamo explored how institutional investors can be encouraged to finance small and medium-sized enterprises (SMEs) through the programmability and transferability of digital trade tokens on a public blockchain.
b. Business need for the project (background)
Ensuring access to trade finance to SMEs by reducing risk.
c. Business process covered*
Trade finance and payment.
d. Overall architecture and functionalities*
Use of non-fungible tokens and smart contracts to trigger payment base on the reception of an electronic bill of lading.
e. Relevant document/figure
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10. Documents and data exchanged via the project
11. Data models/databases, proprietary solutions, hybrid approaches
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12. Main challenges faced during the project
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13. Lessons learned from the project
With respect to programmability, the project demonstrated the use of an electronic bill of lading as a condition for triggering payment - a "marriage" between the digitalization of the trade world and the digitalization of the finance world. In addition, the prototype showcased the use of digital identity for conducting due diligence on the SMEs. The use of Environment, Social and Governance conditions for triggering payment was also explored with an aim to facilitate the building of a greener and more socially responsible supply chain.
14. Main benefit(s) of the project
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14A. Elaborations/detailed description on benefits gained
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15. Technical/financial/capacity building/other assistance
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16. Future plan for expansion of the project
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17. Other information or relevant references on the project
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18. Relevant document regarding the project
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C. Relevant Standards
19. Name(s) of any international, national legal instrument underpinning the project
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20. Electronic message standard
20A. Electronic message standard supporting the project
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20B. Type of standard for electronic message applied for the project
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21. Technical communication standard
21A. Technical communication standard supporting the project
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21B. Type of technical communication standard applied for the project
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22. Security-related standards*
22A. Security-related standard supporting the project
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22B. Type of security-related standard applied for the project
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23. Other Technical Information
23A. Interface developed for data exchange with an internal system
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23B. Other technical implementation information
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