In addition to formulating strategies, the Lab will implement and deploy Distributed Ledger Technology (“DLT”) for corporate clients across the region. DLT is used in a number of ways, including digital identity, digital banking, cross-border payments, trade finance and loyalty and rewards solutions. Hong Kong was chosen as the location for the regional Lab due to its status as a mature financial centre and trading hub, with demand for eco-system enablement through DLT. Other factors that played a role in the choice include Hong Kong’s supportive regulatory environment and a talented international workforce.
The opening of the Lab follows Deloitte's recentl collaboration with the Hong Kong Monetary Authority and five leading banks in Hong Kong to drive the adoption of DLT within the trade finance eco-system. Other examples of Deloitte's successful DLT implementation include helping insurance clients establish bancassurance channels through high-speed partner on-boarding, as well as assisting banks in detecting duplicated financing.
Located at WeWork, the lab aims to facilitates inspiration and cooperation among technology entrepreneurs, freelancers, and startups by providing shared workspace and office services. In collaboration with this community, Deloitte will conduct client workshops, create thought leadership, develop prototypes, provide production support and deliver innovative ideas and solutions for deployed Blockchain networks in the financial services industry.
“Our Asia Pacific Blockchain Lab in Hong Kong is our third global blockchain lab, joining two others that are located in Dublin and New York. These underpin our global network of digital, fintech and blockchain centers, which support clients with their digital innovation programs. The Asia-Pacific region is a forward-looking, energetic geography and Hong Kong is one of the key markets for innovation and digital transformation. It will be exciting to see the team work with our clients in helping them accelerate their path to the future,” said Joe Guastella, Deloitte Global Consulting Leader, Financial Services.
“The grand opening of our Asia Pacific Blockchain Lab in Hong Kong is a strong demonstration of our commitment to blockchain in the region and adds to our global blockchain network. Blockchain is disrupting, changing and improving transaction platforms and ecosystems, and our clients are at the center of this transformation. With a dedicated space, our unique business and technology expertise, as well as our growing ecosystem, we are now in a position to build the next generation of blockchain-based business platforms in this very innovative part of the world,” said Eric Piscini, Deloitte Global Blockchain Leader.
“China is now one of the leading markets for Fintech innovations in Asia, especially in the Blockchain space. We have a handful of major consortiums developing new DLT standards backed by hundreds of financial institutions. With the establishment of our Lab in Hong Kong, we will further support our clients by guiding them along their transformation journeys, improving business performance and achieving sustainable growth through the adoption of these new technologies,” said Stanley Dai, Deloitte China National Consulting Leader.
“DLT is no longer a hype. Most of the technical barriers of DLT, including performance, scalability, security and privacy limitations, are in the process of being addressed and will pose challenges in the months to come. Our clients are already moving towards production deployment,” commented Dr Paul Sin, the Fintech Partner leading the Lab. Sin added that “Hong Kong is a perfect place to start deploying DLT, both as a financial hub and a key trading hub in Asia. With new developments in the Belt and Road strategy, DLT will become the platform of choice for cross-industry and cross-border collaborations.”
Deloitte has developed more than 30 Blockchain-related prototypes, covering a multitude of uses such as digital identity, digital banking, cross-border payments, trade finance and loyalty and rewards solutions, as well as distinct efforts for investment management and insurance sectors.