Involvement with crypto by small and large businesses, such as Facebook’s Libra, is really initiating a new horizon. Reportedly, the Guandong, a coastal province in South China on the north shore of South China Sea, government launched a blockchain-based financing platform Thursday with the objective to help small companies to receive loans quicker from commercial banks.
The project is backed by OneConnect, which is a leading Fintech SaaS provider of advanced technology-enabled business solutions to small and medium-sized financial institutions. The solutions of OneConnect are based on the world-class technologies including AI, Blockchain, Cloud platform and Biometric Identification. The platform has been introduced with the objective to make commercial banks lend funds to small businesses with more detailed and reliable profiles. It is because borrowing money from commercial banks is very expensive and a slow process indeed.
The service of the blockchain financing platform will connect with neighboring Hong Kong and Macao. On the other hand Ant Financial, one of the users of the platform, has planned to test its blockchain network namely Ant Blockchain Open Alliance to support startups. Another feature of this emerging platform is that it makes credit ratings for small and medium businesses according to their financial and administrative information through a blockchain network of 26 government agencies.
In maximum of the cases we see that small businesses can’t meet their desired goal because they can’t run export-import business and can’t accomplish their desired dealings as a result they need to remain lag behind in the long run. In that case the platform appeared like a blessing to those small businesses. Reportedly, the platform has collected information from more than 11 million companies as well as 129 financial institutions. It has processed three transactions between local technology startups and commercial banks including the Industrial Commerce Bank of China. It is expected that the project will go a long way and it’s really a blessing to small businesses and because of that reasons small businesses will start involving with crypto.