The multinational banking and financial services giant, Standard Chartered, has recently decided to embrace a blockchain powered financing platform.
To that effect, the London based firm has signed a memorandum of understanding (MoU) with Linklogis, which is a Tencent-backed Chinese fintech firm. According to the agreement, Standard Chartered is all set to start using Linklogis’ blockchain-powered supply chain financing platform.
This decision to embrace new technology stems from Standard Chartered’s desire to improve business financing opportunities and converge its network and client relationships in China into a compact whole.
To give a brief on Linklogis, the company is based in Shenzhen, China, and provides business to business supply chain financing solutions. The firm has drawn in some high-profile business and investments from organizations like Singapore’s Government Investment Corporation and Tencent. With Tencent, the firm tied up with the fintech unit to launch “TrustSQL” in April 2017, which would serve as a financial blockchain platform.
This new MoU will benefit Linklogis tremendously, since it will offer the firm access to Standard Chartered’s global community and will also offer up their services to firms that import into and export out of China.
The platform that the former is providing to the latter will improve the supply chain transparency for large buyers, and also offer affordable credit to smaller enterprises.
The MoU also states that Standard Chartered and Linklogis will cooperate on areas relating to expediting the bank’s acceptance of new clients by making the administration processes completely digital. Linklogis’ data and analytics capabilities will also provide for better risk management
This new partnerhsip between the two signals another milestone on the way to greater harmony between new technology like blockchain and traditional financial institutions, who are just now beginning to realize and acknowledgethe myriad benefits of a technology like blockchain.