China’s online peer-to-peer (P2P) lending service provider Dianrong said that the next version of its blockchain-based supply chain finance (SCF) solution will be made available on Corda, R3’s open-source distributed ledger.

Founded in 2012 and headquartered in Shanghai, Dianrong has pioneered fintech – particularly blockchain – in improving SCF for micro and small businesses and enabling them to access credit and financial services. The company wants the new Corda distributed application (CorDapp) to extend its reach both in China and globally by leveraging R3’s enterprise-grade blockchain technology platform.

“Today, only 15% of micro and small businesses have adequate access to credit,” says Soul Htite, co-founder and executive chairman of Dianrong and former officer at US online lending platform Lending Club. “This funding gap is particularly evident in large, complex supply chains where small business owners struggle to get the basic financing they need to operate.

“Dianrong has made the strategic decision to further expand our supply chain finance network to make it easier for partners worldwide to adopt our solution. R3’s proven Corda platform will help provide the scalability, customization and global reach supply chain finance demands. And through a CorDapp, we can make this solution even more accessible and easier to use for supply chains in China and around the world.”

David E. Rutter, CEO of R3, adds: “Blockchain’s unique ability to record, track and verify trades has direct applicability to financing smaller suppliers and managing goods throughout a supply chain. Lack of traceability and transparency is a major challenge for supply chains and parts of the logistics industry today.

“The CorDapp we are working on with Dianrong will be a powerful new tool to help address those challenges. It will provide greater access to Dianrong’s solution and help deliver a permanent, immutable record of each smaller supplier within a network, which will allow supply chain operators to make more informed and timely decisions about funding them. This strengthens the overall efficiency and transparency of the entire supply chain.”