Chinese Supply Chain Innovator to Develop Blockchain System for SMEs
Binance’s new blockchain research institute in China has forged a strategic alliance with a state-level supply chain innovator to collectively develop digital infrastructure for SMEs (small and medium enterprises) in the country. Declared on July 3, the Institute’s new associate is Zhongshang Beidon, a state-level enterprise for supply chain innovation that eventually falls under the oversight of a ministerial-level organization recognized as the SASAC (State-Owned Assets Supervision and Administration Commission of the State Council).
SASAC is under the direct management of China’s State Council and is accountable for maintaining all 96 centrally administered state-owned enterprises. As strategic associates, the Binance China Blockchain Institute and Zhongshang Beidou will support utilizing blockchain technology to reconstruct supply chain infrastructure and encourage industrial innovation and the development of China’s digital economy.
They will associate with scientific research, joint project development, and commercializing technological breakthroughs and platform construction. Zhongshang Beidou’s chairman Hongtao Duan stated in a statement that enterprise is, “Committed to driving industry capitalization through information industrialization, bringing China-based brands to the capital markets and the global audience. By applying blockchain technology to the supply chain industry, it will also help protect and reshape the vintage brands and agricultural brands in China.”
As reported, Binance launched its Shanghai-based research institute this March, in a sign that the exchange could be taking tentative steps toward re-establishing its links with China. According to today’s declaration, the Binance China Blockchain Institute entered the United Nations Global Compact as a high-level UN associate in mid-June to promote Beijing’s Belt and Road Initiative.
Other UNGC members involve 15 major Chinese enterprises and institutions, including Sinopec, the China Development Bank, and the State Grid Corporation of China. With the cooperation of Zhongshang Beidou, the Binance China Blockchain Institute is also launching an initiative called the “New Digital Infrastructure — Hundred Cities Thousand Enterprises Spark Project.”
The Institute will fund 100 million renminbi by the Spark Project in over 1,000 micro- and SMEs over the next two years. These enterprises will be offered access to the Binance ecosystem, supporting them to build blockchain industry partnerships and offer them with support for digital transformation.
Though it was established in China, Binance left the nation in the wake of Beijing’s crackdown on crypto-to-fiat trading and initial coin offerings in fall 2017. The government’s tough stance was soon consolidated by a string of additional measures targeting decentralized cryptocurrencies’ trading and issuance.
In fall 2019, Binance made its first strategic Chinese investment since leaving the nation. There have since been unconfirmed rumors that it could be attempting to open an office in Beijing. Binance launched peer-to-peer trading services for Chinese Yuan pairings against BTC (Bitcoin), ETH (Ether), and USDT (Tether). In January 2020, the exchange committed to buying $1.4 million in medical supplies as part of its “Binance for Wuhan” project.