China’s Chained Finance brings blockchain boost to SME funding
Chinese fintech firms Dianrong and FnConn have launched Chained Finance, the “first-ever” blockchain platform for supply chain finance.
According to the pair, supply chain finance companies have been limited by existing technology and, to date, have only served about 15% of suppliers needing financial resources. They claim the vast majority of the 40 million SMEs in China remain “unserved”.
The two companies recently completed a “successful” pilot and proof of concept of Chained Finance by securing $6.5 million in loans for SME supply chain operators.
Soul Htite, founder and CEO of Dianron, says Chained Finance will provide supply chains with “easier access to funding at competitive rates”.
Chained Finance is based in Shanghai and currently has 40 employees. It is initially targeting three industries: electronics, auto and garment manufacturing.
Dianrong says it originates more than $300 million in monthly assets for 3.7 million retail lenders. Based in Shanghai, it has 28 offices across China and employs approximately 3,500 professionals, including 600 full-time “fintech engineers”.
FnConn is a subsidiary of Taiwanese electronics manufacturing titan Foxconn.
