Chinese firms Dianrong and FnConn have launched a blockchain-based platform for supply chain finance. Named Chained Finance, the system is the result of a successful pilot and proof of concept.
The industry has been limited by existing technology, the two firms claim, and has only managed to serve around 15% of suppliers needing financial resources. A “vast majority” of the 40 million SMEs in China remain underserved.
Chained Finance will be targeted three major sectors: electronics and auto and garment manufacturing. Dianrong and FnConn are hoping to triple the number of SME supply chain operators with access to funding in China.
“Blockchain is revolutionising the finance industry and offers seamless solutions to any company operating and financing complicated supply chains,” says 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.”
By using the Chained Finance platform, adds Jack Lee, Executive Director and CEO of FnConn, every payment and supply chain transaction can be more transparent, manageable and easily authenticated.
Chained Finance has launched with an initial 40 employees, though the number is expected to grow throughout 2017.