- Standard Chartered Bank, announced a strategic investment in the China-based firm Lianyirong Digital Technology Group Co., Ltd.
- China’s Lianyirong is a forerunner in the race of global industrial transformation and up-gradation.
- The benefits of the blockchain technology, Standard Chartered Bank and Lianyirong are working on a new path to expand the financing coverage for upstream.
Standard Chartered Bank, the multinational financial service provider, announced a strategic investment in the China-based firm Lianyirong Digital Technology Group Co., Ltd. (after this referred to as Lianyirong).
The British financial giant also stated that blockchain technology would be used to “upgrade the supply chain financial services, assist the enterprise’s ecosystem management, and provide its suppliers with convenient financing services, alleviating the bottleneck of financing difficulties for small, medium and micro enterprises.”
This investment in the Chinese supply chain platform marks Standard Chartered Bank’s first investment in China. For Lianyirong, this is the first instance of backing from a global bank.
Presently, China’s Lianyirong is a forerunner in the race of global industrial transformation and up-gradation, which expected to change the life of many.
Powered by the benefits of the blockchain technology, Standard Chartered Bank and Lianyirong are working on a new path to expand the financing coverage for upstream and downstream companies within the supply chain.
This expected to create a supply chain where a deep transfer is possible through electrification, and that will provide the benefits of being transparent, traceable, and none-tamperable.
This will lead the company to be able to seek relevant information on the industrial chain and payment voucher materials at convenience and make decisions on credit effectively. This will ensure not only hassle-free and efficient financial arrangements but also is time-saving.
Reports have also stated that Standard Chartered Bank hopes to continue this alliance with Lianyirong and utilize its technical expertise to create an interface within the bank’s financial system allowing the bank’s funds to enter the industry chain effectively.
The two sides also expected to explore new avenues, including extending technical solutions for commercial needs in cross border capital flows.
Hong Yingzheng, Chief Executive Officer of Standard Chartered Bank Greater China and North Asia, has stated that-
“Standard Chartered’s strategic investment in Lian Yirong not only enhances the industry-financed integration and the customer’s ecosystem but also helps to meet the needs of China’s real economy for capital flows, especially serving relevant enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area.”
He further added that the partnership has emerged in a time where a global trend of customers looking for efficient and trusted digital platforms has begun and will thus produce effective results.