Chinese Banks to Put Credit Blacklist on a Shared Blockchain

The banking arm of Chinese retail giant Suning is testing a blockchain that would allow banks to share a ledger of users with bad credit scores.

AccessTimeIconJun 14, 2018 at 8:00 a.m. UTC
Updated Sep 13, 2021 at 8:03 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The banking arm of Chinese retail giant Suning is testing a consortium blockchain that would allow participating banks to record and update a shared ledger of users with bad credit scores.

According to a local news source Sina Finance on Thursday, Suning Bank developed the blockchain system in order to move its blacklist of suspect borrowers to a distributed database in an effort to allow collaboration with other banks on preventing credit fraud.

Using the system, each participating institution becomes a node of the blockchain that can access the original blacklist shared by Suning Bank. Node institutions can further update the list with their own data, the report indicates.

Founded by Suning in 2017, Suning Bank is one of the first online-to-offline commercial banks in China, launched by established private companies to provide loans to small and medium businesses.

The move to share data on users' trustworthiness is the latest by the financial institution to utilize blockchain technology in managing its credit systems.

In September of last year, Suning Bank joined another blockchain consortium created by two other private commercial banks – CITIC and Minsheng – which uses a blockchain system to record transactions of domestic letters of credit.

In March, CITIC touted in its annual financial filing that the platform has already facilitated transactions worth a total of $156 million.

Suning image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.