Chainedfinance

Chained Finance is a supply chain finance platform that utilizes blockchain technology. It was launched as a joint venture between Dianrong, an online marketplace lending company in China, and FnConn, a subsidiary of the electronics manufacturer Foxconn. The market launch was announced in March 2017, with the company based in Shanghai.

The platform was established to address the significant lack of access to financing for small and medium-sized enterprises (SMEs) within China's supply chains. It aims to provide capital to smaller suppliers who are often underserved by traditional finance, while offering larger multinational manufacturers greater transparency and visibility into their supply chains. The business model leverages blockchain to create a trusted, decentralized digital ledger where all transactions are recorded immutably, enhancing transparency and security for all parties. By authenticating every payment and transaction on the blockchain, the platform reduces counterparty trust issues and enables automated execution through smart contracts.

Initially, Chained Finance targeted the electronics, automobile, and garment manufacturing industries. Its core service involves enabling large corporations to pass on their creditworthiness to smaller suppliers, who can then secure financing more easily and at competitive rates. This process is designed to improve cash flow for suppliers and enhance management efficiency for the core enterprises. A pilot program before the official launch successfully originated US$6.5 million in loans for SMEs in China.

Keywords: supply chain finance, blockchain technology, SME financing, financial technology, trade finance, decentralized finance, manufacturing finance, automotive supply chain, electronics manufacturing, garment industry finance, asset-backed securities, core enterprise financing, supplier financing, digital ledger technology, smart contracts, P2P lending, business factoring, accounts receivable financing, China, Dianrong, FnConn