The government-led project is backed by OneConnect, a fintech company backed by one of China's largest insurers, Ping An Insurance, according to a report by Sina Finance.
The platform aims to simplify the process for commercial banks to lend funds to small businesses with more detailed and reliable profiles, including credit ratings, provided by their blockchain network.
The new platform could be the result of a government initiative launched in July to create a blockchain financing platform to connect with nearby Hong Kong and Macau to help small businesses more easily borrow, according to the report. .
One of the platform's users is Ant Financial, which announced in November plans to test its blockchain network, the Ant Blockchain Open Alliance, to support startups, while OneConnect presented an initial US $ 468 million public offering in the same year. month.
The new platform creates credit ratings for small and medium businesses based on their financial and administrative information through a blockchain network of 26 government agencies, such as the State Administration for Industry and Commerce.
"Borrowing money from commercial banks for small businesses has been slow and expensive," said Xiaojun He, director of Guangdong's Local Financial Regulation Department, in the report.
With the platform, small businesses will be able to use their import and export trade and intellectual property records to apply for funds from commercial banks, which is impossible in the status quo, according to the report. You can also combine companies with 319 financial products, depending on your financial situation.
According to the report, the platform collected information from more than 11 million companies and 129 financial institutions. He has processed three transactions between local technology startups and commercial banks, including China Industrial Bank, China Construction Bank and Ping An Bank.
Image Credits: Image of Guangdong City via Shutterstock.