Chinese fin­tech gi­ant Ant Financial and Yun­nan In­ter­na­tional Trust co­op­er­ate on blockchain-dri­ven sup­ply chain fi­nanc­ing

Fin­tech gi­ant Ant Group has en­tered a strate­gic agree­ment to bring its blockchain-dri­ven sup­ply chain fi­nanc­ing so­lu­tions to the south-west­ern Chi­nese province of Yun­nan.

Ant Financial Services Group formerly known as Alipay, is an affiliate company of the Chinese Alibaba Group and Yun­nan In­ter­na­tional Trust en­tered a strate­gic co­op­er­a­tive agree­ment on 10 July to “make use of the tech­no­log­i­cal vi­tal­i­sa­tion role of blockchain with re­gard to sup­ply chain fi­nanc­ing.”

The co­op­er­a­tive agree­ment will fo­cus in par­tic­u­lar on re­solv­ing the fi­nanc­ing dif­fi­cul­ties of mi­cro, small and medium-sized en­ter­prises.

Dur­ing the spread of COVID-19 in China Yun­nan In­ter­na­tional Trust made use of Ant Group’s blockchain tech­nol­ogy to help pro­vide sup­ply chain fi­nanc­ing to up­stream SME’s (phar­ma­ceu­ti­cal sup­pli­ers) of Shen­zhen-listed Re­al­can Phar­ma­ceu­ti­cal.

Lo­cal sources said to China Se­cu­ri­ties that the agree­ment marks an ac­cel­er­a­tion of ef­forts to in­te­grate “blockchain + sup­ply chain fi­nanc­ing + in­dus­try” in China, and there was a huge mar­ket for blockchain-dri­ven sup­ply chain fi­nanc­ing given that it would serve as a key chan­nel for dri­ving fi­nan­cial in­clu­sion amongst smaller com­pa­nies.

Fig­ures from Price­wa­ter­house­C­oop­ers fore­cast an­nual com­pound growth in Chi­na’s sup­ply-chain fi­nanc­ing mar­ket of 5.2% dur­ing the pe­riod from 2019 to 2025, and for the mar­ket to ap­proach 20 tril­lion yuan in scale by 2025.

As AZCoin News reported on 3 months ago, Ant Fi­nan­cial and China Ever­bright Bank were step­ping up their fin­tech co­op­er­a­tion amidst on­go­ing ef­forts to con­tain COVID-19. Ever­bright Bank be­came one of the first lenders in China to in­te­grate with Ant Fi­nan­cial’s “Dual Chain Con­nec­tion” plat­form to pro­vide blockchain-dri­ven sup­ply-chain fi­nanc­ing.

Read more:

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