Local news outlet Sina Finance announced today that Suning Bank in China is developing a blockchain project that utilizes distributed ledger technology (DLT) to maintain a shared and updated list of customers with bad credit scores.
Founded last year, Suning Bank is one of China’s first online-to-offline banks to provide loans to SMB’s. It is the financial branch of retail giant Suning.com Co. Ltd, one of the largest non-governmental retailers in China.
In the announcement of the new project, it is stated that the blockchain ledger will provide financial institutions with the ability to encrypt and store their blacklist in a shared repository which will aid in the joint prevention and control of fraud.
Each organization to use the system will become a ‘node’ of the blockchain and be able to access all others shared data, as well as update their own.
This type of collaboration between banks is the latest in a string of projects by Chinese financial institutions adopting blockchain technology in the management of credit. Late last year a system to manage domestic letters of credit was developed by CITIC, in collaboration with Suning Bank and Minsheng, and has since completed $156 million worth of transactions.
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