The People’s Bank of China (PBoC) has secured a funding of 32.5 million yuan ($4.7 million) for its blockchain trade finance platform for key research and development projects.

The country’s central bank has been spearheading this platform that was launched in Sept. 2018 in South China’s Guangdong Province. Now, it has acquired the funding that will be injected throughout the following 3 years, reported the Global Times Monday.

The funding will help the platform improve small and medium-sized enterprises (SMEs) so they can use a broader field of finance tools.

Currently, more than 40 banks and nearly 1900 companies are part of this platform which processed a total of 90 billion yuan ($12.5 billion) worth of transactions by December 2019.

The blockchain trade finance platform of PBoC is overseen by the central bank’s Digital Currency Research Lab, local banks, the Chinese Academy of Sciences, and major Chinese universities like Tsinghua University, per the media reports.

In November, in order to expand its trade finance business, the Hong Kong Monetary Authority signed an agreement with the central bank to connect its blockchain-based trade finance platform eTrade Connect with PBoC’s.

The platform has also reportedly improved the productivity of SME loan authorizations significantly while the time needed to prepare trade financing has been reduced from ten days to just about 20 minutes. Additionally, corporate financing expenditures have also declined to below 6%.

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