According to an announcement on its official website, British multinational banking and financial services company Standard Chartered has successfully completed its very first joint blockchain powered supply chain financing transaction. The deep-tier supply chain financing transaction was carried out in collaboration with Linklogis, a Chinese supply chain financing service firm.
The publication also mentions that the relationship between Standard Chartered and Linklogis began officially with a memorandum of understanding (MoU) signed by the two firms in February 2019. This collaboration is focused on improving the bank’s supply chain as well as add their own quota to the growth and development of China’s economy.
It is further noted that the transaction was also done with help from WeQChain, a Linklogis’ platform which is largely created with a blockchain framework from Tencent, the Chinese internet company. The transaction was done by both Standard Chartered and Linklogis for “Digital Guangdong and its upstream suppliers”.
The Digital Guangdong is a collaborative effort between China Unicom, China Telecom, China Mobile and Tencent. The project, for people in the Guangdong province in South China, has now created at least 700 different digital services and applications for the government, which has gone on to successfully process more than 200 million transactions.
Using WeQChain, the partnership between Standard Chartered and Linklogis has ensured increased transparency for the entire supply chain and has made it a lot more affordable and easy for upstream suppliers to access to credit facilities. Based on the success of the transaction, the two firms are now looking to expand their supply chain solution to other spheres.
According to Xie Wan, the Head of Commercial Banking China at Standard Chartered: