Hong Kong and Singapore have agreed to cooperate on a cross-border trade project based on blockchain technology as part of a broader joint strategy on financial technology.

The two Asian powerhouses’ central banks signed a fintech deal Wednesday to collaborate on a number of projects including business innovation, data sharing and exchange of expertise.

“Hong Kong and Singapore are the two leading international financial centers in the region and are actively deploying fintech,” Norman Chan, chief executive of the Hong Kong Monetary Authority (HKMA), said in an announcement Wednesday.

“Collaboration between the HKMA and MAS (Monetary Authority of Singapore) will create significant synergy for the development of fintech and more efficient fund flows between the two markets.”

The announcement was made at a fintech conference in Hong Kong.

Both city-states are traditionally considered rivals for the position of Asia’s top financial hub.

Collaboration on a distributed ledger technology project would be significant for both markets, allowing cross-border trade and financing.

“This is one of our more significant fintech co-operation agreements, given the extensive financial and trade linkages between Singapore and Hong Kong,” Ravi Menon, managing director of MAS, said.

“We are especially pleased that we have a live project to enhance the trade finance corridor between the two financial centers.”

The two authorities said that further details about the blockchain project would be announced next month.