Blockchain platform developed by DBS Bank and Chinese partners will connect car manufacturers, exporters, logistics carriers and car dealerships and facilitate integrated trade financing in China.
DBS, China Capital Logistic and Wanxiang Blockchain have launched YunLiangMeng, a blockchain platform to connect actors along the automotive industry supply chain in China, the bank announced in a press release.
YunLiangMeng, which means “Logistics Supply Chain Connect” in Mandarin, allows users to view data and delivery status of orders in real time, which brings greater cost savings, transparency and efficiency to transactions along the automotive supply chain, according to the bank.
«By partnering with key industry leaders, we were able to tap on each other’s expertise and networks to develop a blockchain platform with the scale and reach to make a meaningful impact to the automotive industry in China,» Neil Ge, CEO of DBS China, said.
Credit Financing
The platform allows an expedited credit approval process for participants as DBS would use data stored on YunLiangMeng to disburse trade financing, resulting in a shorter working capital cycle and cost savings, the bank said. Users of the platform will have easy access to credit financing on-the-go – something that was not previously afforded to small and medium enterprises.
The first trade financing request has already been processed and disbursed to a vendor on the platform.
China Capital Logistic, a subsidiary of Beijing Automotive Group, is one of the largest automotive logistics companies in the country. China produced 21 million passenger cars in 2015, the highest in the world, according to Statista.
