Binance was founded just three years ago and in the short span of time, it has grown to become one of the most popular cryptocurrency exchanges. The platform was originally founded in China but had to move out soon after Beijing started cracking down on crypto exchanges and ICOs back in 2017.
However, it looks like the organization is now trying to re-establish its links with China as the Binance China Blockchain Institute recently partnered with Zhongshang Beidon Supply Chain Management Group, a state-owned enterprise, to collaborate on developing new digital infrastructure for small and medium businesses in the country.
As per an official announcement from the company, the collaboration is a key milestone for Binance because Zhongshang Beidon is overseen by a ministerial-level organization known as the State-Owned Assets Supervision and Administration Commission of the State Council (SASAC).
The organization is directly managed by China’s State Council, along with 96 other centrally administered state-owned enterprises in the country.
Both parties will work together, leveraging blockchain technology, to disrupt the supply chain infrastructure while boosting the development of China’s digital economy. The collaboration will be on scientific research, joint project development, and commercializing technological breakthroughs and platform construction.
Hongtao Duan, chairman of Zhongshang Beidou, stated:
“At Zhongshang Beidou, we are committed to driving industry capitalization through information industrialization, bringing China-based brands to the capital markets and to 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.”
The announcement further adds that the Binance China Blockchain institute also joined the United Nations Global Compact (UNGC) as a high-level UN partner back in June to facilitate China’s “Belt & Road Initiative” and promote sustainable development.
The UNGC is a non-binding United Nations pact that encourages businesses to adopt sustainable and socially responsible policies. Other members include 15 major Chinese companies including big names like the China Development Bank, Sinopec, and the State Grid Corporation of China.
The Binance China Blockchain institute also has plans to launch an initiative dubbed the “New Digital Infrastructure — Hundred Cities Thousand Enterprises Spark Project.”
The Spark Project aims to invest 100 million renminbi (approx. $14 million) in over 1,000 micro- and SMEs over the next two years. All the businesses in the project will have access to the entire Binance ecosystem with the idea of assisting them in building blockchain industry alliances and providing support to transform digitally.
According to Binance Asia-Pacific VP Mai Lu:
“Blockchain technology has the proven track record of empowering traditional industries, especially in the supply chain area. […] By joining forces with Zhongshang Beidou, an exemplary business in supply chain innovation, Binance China Blockchain Institute will continue to push the integration of industry, education and research, accelerate digital transformation and help foster the digital economy in China.”
The collaboration is expected to strengthen Binance’s presence in China while also benefiting the blockchain space in the nation. Recently, the institute also partnered with Xinyuan Group, a Chinese real estate company working on incorporating blockchain technology in the global real estate industry.