Ant Financial Provides Supply Chain for China Everbright Bank Using DLT
China Everbright Bank (CEB) is China s major commercial bank and one of the world s largest listed companies. It is launching Ant Financial s blockchain-based supply chain finance solution.Ant Financial, the financial arm of Chinese e-commerce giant Alibaba, has partnered with CEB to implement Duo Chain, an online serv...
China Everbright Bank (CEB) is China's major commercial bank and one of the world's largest listed companies. It is launching Ant Financial's blockchain-based supply chain finance solution.
Ant Financial, the financial arm of Chinese e-commerce giant Alibaba, has partnered with CEB to implement Duo Chain, an online service platform designed to handle financial transactions related to the supply chain.
Ant Financial started its business on Duo Chain in 2019,
and Ant Financial initially established a partnership in the second half of 2019. According to Sina Finance, a publication focused on local finance, CEB is the first Bank of China to deploy Ant Financial Duo Chain. On March 12, according to local reports, Ant Financial initially launched the technology in 2019 to leverage Blockchain technology to facilitate supply chain financing.
By definition, supply chain finance (SCF) is an optimization practice designed to provide effective financing for value chains. The goal of both the buyer and the seller is to reduce the working capital by deploying the buyer's credit rating and improve cash flow at a reduced cost. As a result, SCF provides short-term credit, enabling buyers to extend payment terms and enabling suppliers to receive payments in advance.
To date, many companies worldwide have deployed blockchain-based SCF solutions to increase transaction transparency and optimize credit access costs. For example, Standard Chartered Bank, a London-based bank and financial services company, completed its first blockchain-based joint supply chain financing transaction in August 2019. Previously, China Shipbuilding Industry Corporation and Bank of Shanghai jointly developed an online supply chain finance based on blockchain. Platform in 2018.
China Everbright Bank Improves Security of SCF Transactions Through Blockchain
Through the implementation of Ant Financial ’s Duo Chain technology, China Everbright Bank aims to improve the security of SCF and eliminate fraudulent transactions. According to Sina, the Duo Chain platform allows users to use CEB for identity verification and electronic signatures, while recording all relevant transactions to a distributed ledger for tracking.
CEB reportedly added that the bank has also integrated internal and external data management platforms, corporate credit platforms, and other interconnected systems to improve the efficiency and quality of its financial services.
The deployment of dual-chain technology is not the first step CEB has taken towards the blockchain. According to reports, China Everbright Bank became a member of the main blockchain banking project `` Trade and Interbank Trading Blockchain Platform '' in early 2019. The platform was launched in December 2018 by the China Banking Association, a Chinese self-discipline bank organization.
News Reference: https://cointelegraph.com/news/china-everbright-bank-uses-ant-financials-dlt-for-supply-chain-finance