How Dianrong is taking on shadow banking with blockchain

The Chinese P2P lender teams up with software startup R3 to provide new supply-chain financing by the distributed ledger technology that underpins cryptocurrencies.

Blockchain isn't only about supporting cryptocurrencies like bitcoin or ethereum. Dianrong, a Shanghai-based P2P lending platform, is tapping the distributed ledger technology in an attempt to boost supports for cash-strapped small businesses. In doing so, it's hoping to find a transparent and efficient way of building its share of China's vast non-bank lending industry, at a time when regulators are putting shadow banking under the spotlight.

Dianrong has developed the new Corda app “CorDapp” which leverages R3’s blockchain technology platform.

For investors, blockchain puts the small businesses, the P2P investors and regulators all on the same page. With a low-cost and decentralised-ledger approach to managing information,...

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