Guangdong launched a blockchain platform for lending to small and medium-sized businesses

The authorities of the Chinese province of Guangdong have launched a blockchain platform with which commercial bankscan issue loans to small and medium enterprises in the region.

The project was developed with the participation of OneConnect -a subsidiary of Chinese insurance giant Ping An Insurance, a financial technology company. The Guangdong administration claims that the platform will accelerate and simplify the lending process, as well as make it more efficient.

According to the developers, the blockchain is availabledetailed information about companies, and also displays the credit rating of organizations, which is compiled on the basis of financial and administrative information provided by various government agencies.

To obtain a loan, enterprises mustprovide banks with reports on their trading activities, and banks, in turn, will provide a wide selection of 319 financial products. Industrial Commerce Bank of China, China Construction Bank and Ping An Bank have already issued loans through the platform to three local startups.

Let us recall that in February last year, a blockchain platform for e-commerce was launched in the Chinese province of Guangdong in order to improve the efficiency of tax accounting.

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