China Everbright Bank (CEB), a major commercial bank in China and one of the world’s largest public companies, is debuting a blockchain-based supply chain finance solution by Ant Financial
Ant Financial, the financial arm of the Chinese e-commerce giant, Alibaba, has partnered with CEB to collaboratively implement Duo Chain a network services platform designed to handle supply chain-related financial transactions.
CEB and Ant Financial initially formed their partnership during the second half of 2019. CEB is the first Chinese bank to deploy Ant Financial’s Duo Chain, as reported by the local finance-focused publication, Sina Finance, on March 12. According to local reports, Ant Financial originally unveiled the technology in 2019 to boost supply chain finance using blockchain technology.
Supply chain finance (SCF) is an optimization practice that aims to provide efficient financing of the value chain. The goal of both party’s buyer and seller is to reduce working capital and improve cash flow at a diminished cost.
As such, SCF provides short-term credit which allows buyers to extend their payment terms and enables suppliers to receive earlier payments. To date, several companies worldwide have already deployed blockchain-based SCF solutions to increase the transparency of transactions and optimize costs of credit access.
For example, London-based bank and financial services firm, Standard Chartered, completed its first joint blockchain-based supply chain financing transaction in August 2019. Previously, China Shipbuilding Industry Company partnered with Shanghai Bank to develop a blockchain-based online supply chain finance platform in 2018.
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