Standard Chartered confirms first supply chain finance transaction on blockchain
Standard Chartered and Linklogis have recently completed their first joint deep-tier supply chain financing transaction for Digital Guangdong and its upstream suppliers.
The project is part of an ongoing strategic collaboration between the two parties since signing a memorandum of understanding in February and marks the first time that the Linklogis platform has jointly delivered deep-tier supply chain financing with an international bank.
Digital Guangdong is a joint venture between Tencent, China Unicom, China Telecom and China Mobile, which to date has developed more than 700 digital government services and applications and processed over 200 million transactions for the residents of Guangdong, a province in South China.
By leveraging Linklogis’ “WeQChain”, a platform based on Tencent’s blockchain technology, to enable deep-tier supply chain financing, the collaboration between Standard Chartered and Linklogis provided Digital Guangdong with transparency beyond their direct suppliers into their whole supply chain, as well as cheaper and more convenient access to credit for its upstream suppliers.
With the feasibility of the joint transaction successfully demonstrated, Standard Chartered and Linklogis say they are actively expanding the solution to deliver the benefits to more supply chain ecosystems.
Xie Wen, Head of Commercial Banking China at Standard Chartered, said: “Our clients today have to compete not just on their individual strength, but also on the combined strength of their ecosystems. Standard Chartered has always been committed to helping our clients create a healthy and sustainable ecosystem. Through our cooperation with Linklogis, and by leveraging blockchain technology, we will be able to offer our clients a distinct service to empower their ecosystems.”
Charles Song, Chairman & CEO of Linklogis, said: “Linklogis is committed to the development of online, data-driven supply chain financial services to provide seamless integration between companies, funding providers and service platforms. As a FinTech company, we believe closer collaboration with leading financial institutions like Standard Chartered will allow us to build innovative technological applications to solve the fundamental financing problems faced by SMEs.”