A large Chinese commercial bank China Everbright Bank (CEB) is introducing blockchain-system for tracking the chains of deliveries. The system was developed by a company Ant Finance, a subsidiary of a trading giant Alibaba.
Network blockchain-platform Duo Chain, launched specifically for the operations with the chains of deliveries and accompanying them financial operations, will be implemented in the bank’s structure. CBE will become the first Chinese bank that uses Duo Chain in its work process.
The platform assists both participants of the deal — the seller and the buyer — to decrease the number of frozen assets and to increase the money flow. The blockchain makes the entire process of purchase and delivery more efficient and reduces the costs. Besides this, the platform allows organizing short-term loans for the buyers or early payments for the sellers.
Utilization of Duo Chain will help to increase the security of the financial trade deals and avoid fraud transactions. The platform allows us to complete the full identification of the users and hand them out the digital signatures, then to add their data into the blockchain and later verify whether it remained unchanged. The deals of trade financing on the blockchain are becoming more and more popular. Similar systems were already tested by the leading banks, such as JPMorgan, Standard Chartered and SBI Holdings. Earlier, it was reported that Chinese banks in the city of Chongqing were also using the block-chain system of trade finance, through which the deals worth 460$ million had been transacted in the previous year.
