FnConn, the financial services arm of Taiwan-based Foxconn, launched the platform alongside Dianrong, a Chinese online lending marketplace. Dubbed Chained Finance, the platform is aimed at providing working capital to smaller businesses involved the manufacturing supply chain. According to the two firms, a previous proof-of-concept involved the issuance of loans worth $6.5m to a group of unnamed companies.
Chained Finance has an initial focus on the automotive, electronics and garment production industries, though FnConn and Dianrong indicated that this scope could be widened in the future. The new company employs 40 people, representatives for the firm said, a number expected to rise in the months ahead.
Jack Lee, CEO and executive director of of FnConn, said in a statement:
“By using the Chained Finance platform, every payment, every supply chain transaction, can be more transparent, manageable and easily authenticated. Chained Finance will provide timely, efficient support to far more suppliers of all sizes. It will also help ensure the timely delivery of products to end customers and improve efficiencies across the entire supply chain.”
Both FoxConn and Dianrong have worked with the tech in the past.
FoxConn is one of a number of Fortune 500 firms working on a blockchain-based Internet of Things concept. Dianrong, by comparison, joined the Linux Foundation-led Hyperledger blockchain project in December. Founder and CEO of Dianrong, Soul Htite, said in a statement:
“Chained Finance creates a unique ecosystem that will provide supply chains with easier access to funding at competitive rates.”