Source: Chained Finance
Dianrong and FnConn today announced the market launch of Chained Finance, the first-ever blockchain platform for supply chain finance.
The new platform leverages advanced financial technology to meet the hugely underserved needs of supply chain finance in China.
Supply chain finance companies have been limited by existing technology and, to date, have only served about 15 percent of suppliers needing financial resources. As a result, the vast majority of the 40 million SMEs in China remain unserved. Chained Finance enables supply chain finance to deliver needed capital to smaller supply chain suppliers and provide large multinational manufacturers with enhanced visibility and transparency.
The two companies recently completed a successful pilot and proof of concept of Chained Finance by securing funding for small and medium enterprises (SMEs) in China that were otherwise unable to secure needed capital. Chained Finance originated US$6.5 million (RMB45 million) in loans for these SME supply chain operators.
Chained Finance is initially targeting three major industries: electronics, auto and garment manufacturing. It is expected that Chained Finance could help supply chain finance operators potentially triple the number of SME supply chain operators with access to funding in China.
"Blockchain is revolutionizing the finance industry and offers seamless solutions to any company operating and financing complicated supply chains," said Soul Htite, Founder and CEO of Dianrong. "The complexity and scale of supply chain finance has posed major challenges in ensuring adequate funding and efficient operations. Chained Finance creates a unique ecosystem that will provide supply chains with easier access to funding at competitive rates. In return, supply chain operators will gain greater visibility of their suppliers and the many layers of finance embedded in the process."
"By using the Chained Finance platform, every payment, every supply chain transaction, can be more transparent, manageable and easily authenticated," said Jack Lee, Executive Director and CEO of FnConn. "Chained Finance will provide timely, efficient support to far more suppliers of all sizes. It will also help ensure the timely delivery of products to end customers and improve efficiencies across the entire supply chain."
Messrs. Lee and Htite said Chained Finance will help eliminate many of the trust issues faced by counterparties and deliver automated execution. The new platform will be an enabler of supply chains across many major industries and geographies.
Chained Finance is based in Shanghai and currently has 40 employees, with this number expected to grow throughout 2017.
Contributed | what does this mean?