Dianrong, an online marketplace lending in China, and FnConn, a subsidiary of Foxconn Technology Group, announced the market launch of Chained Finance, a blockchain platform for supply chain finance.
The new blockchain platform leverages advanced fintech in order to meet the growing and vastly underserved needs of supply chain finance in China. Both the partnering companies recently completed a successful pilot and proof of concept of Chained Finance by acquiring funding for small and medium enterprises (SMEs) in China, the release stated.
“Blockchain is revolutionizing the finance industry and offers seamless solutions to any company operating and financing complicated supply chains. 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,” Soul Htite, Founder, and CEO of Dianrong, said.
Chained Finance not only allows supply chain finance to deliver the needed capital to smaller supply chain suppliers but also provides improved visibility and transparency to large multinational manufacturers.
Based in Shanghai, Chained Finance currently has 40 employees, which is expected to grow throughout this year. It is initially targeting on 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.”
Both Htite and Lee said that the Chained Finance will aid in eliminating and minimizing various trust issues that are faced by counterparties and deliver automated execution. The new blockchain platform will serve as an enabler of supply chains across many major industries and geographies.
