Global Shipping Business Network (GSBN) has announced the completion of a proof-of-concept with HSBC to use Decentriq Data Clean Rooms, a confidential computing technology, to revolutionise global trade finance.
Global trade relies heavily on trade finance, but the financing gap is projected to reach $2.5 trillion by 2025 due to insufficient information provided by requesting entities, as per the World Economic Forum
In response, HSBC partnered with GSBN to create solutions and proof-of-concepts that use trusted digital data from the supply chain to meet this unfulfilled need.
As obtaining information through paper documents is a lengthy and burdensome process, GSBN and HSBC are reportedly using confidential computing technology to aggregate shipping records across shipping lines and gain insights into customers’ shipping activities.
In a proof-of-concept, synthetic shipment details provided by carriers are processed in a data clean room, allowing HSBC to access important statistics such as the number of shipments, cargo distribution, and average quantity.
READ: Harnessing the power of data to address supply chain challenges
According to the partners involved, this technology removes unnecessary information, provides only necessary stats to the bank, and improves the accuracy of data by aggregating information from multiple parties. It also ensures privacy, security, and auditability throughout the data lifecycle using blockchain and confidential computing technologies.
“This latest collaboration with HSBC demonstrates GSBN’s unique position not only as a trusted data utility platform, but also as a liaison between banks, carriers, and other stakeholders to explore new value-adding applications,” said Bertrand Chen, CEO at GSBN.
“We will continue to collaborate with our members and partners to expand the applications of confidential computing technology.”
Most recently, GSBN signed a five-way non-binding Memorandum of Understanding (MoU) to promote paperless trade.
The other signatories of the MoU include shipper Saudi Basic Industries Corporation (SABIC), carrier COSCO SHIPPING Lines (COSCO SHIPPING), and global terminal operators Hutchison Ports and PSA International (PSA).
