Dianrong and Foxconn launch China’s first blockchain platform
Dianrong, a leading online P2P marketplace lending company, and FnConn, a subsidiary of Foxconn Technology Group, have launched China’s first-ever blockchain platform called ‘Chained Finance’. The platform leverages advanced financial technology to meet the hugely underserved needs of supply chain finance in China.
The new blockchain platform allows supply chain finance to deliver the needed capital to smaller supply chain suppliers. Moreover, the platform aims to improve visibility and transparency to large multinational manufacturers. In the past, traditional supply chain finance firms had only about 15% of the supply chain suppliers. With the new technology, however, the companies expect the platform to help supply chain financing companies to triple the number of small suppliers they reach.
Chained Finance mainly aims to target three major industries—auto, electronics and garment manufacturing.
“By using the Chained Finance platform, every payment, every supply chain transaction, can be more transparent, manageable and easily authenticated,” Jack Lee, Executive Director and CEO of FnConn, commented. “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.”
An announcement on Monday (March 6, 2017) said Chained Finance aims to break down barriers facing other supply chain financing firms, which, according to them, have only been able to meet about 15 percent of suppliers in need of financing in China. Using blockchain technology, Chained Finance can access some of the smaller suppliers in China to fill the need.
FnConn and Dianrong recently completed a pilot of Chained Finance’s services, originating $6.5 million in financing to SME supply chain companies in the nation. Now, the company will launch on a broader scale with an initial focus on the electronics, auto, and garment manufacturing spaces.
The companies said their platform could help supply chain financing companies potentially triple the number of small suppliers they reach.
“Blockchain is revolutionizing the finance industry and offers seamless solutions to any company operating and financing complicated supply chains,” said Dianrong founder and CEO Soul Htite in a statement. “The complexity and scale of supply chain finance have 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.”