Junengda Electric Takes the Lead to Capture Opportunities in Global Supply Chain Finance and Cross-Border Transactions
The global digital wave and accelerating energy transition are underway. Digital currencies, especially stablecoins, are becoming core tools to restructure cross-border trade. They also play a role in transforming supply chain finance. Junengda Electric is a leading Chinese transformer manufacturer. The company has keenly seized this trend. It is actively exploring stablecoin application scenarios in the electrical equipment industry. Such efforts aim to inject new momentum into industry transformation and upgrading.
Stablecoins: Key to Solving Cross-Border Transaction and Supply Chain Pain Points
In traditional cross-border trade, transformer manufacturers face challenges like high exchange rate risks.
Long settlement cycles and high transaction fees are also common issues.
For example, Junengda Electric’s exports use USD, EUR, and other multi-currency settlements.
Exchange rate fluctuations alone cause millions of USD in annual losses for the company.
Stablecoins like USDC and USDT peg to fiat currencies for real-time settlement.
They offer zero exchange rate risk and reduce costs by over 90%.
Additionally, information asymmetry in supply chain finance has long constrained the development of small and medium suppliers. By introducing stablecoins and blockchain technology, Junengda Electric can digitize accounts receivable into smart contracts, allowing suppliers to quickly obtain low-interest loans with the financing cycle shortened from 3 months to 72 hours.
Junengda Electric’s Three Strategic Initiatives
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Innovation in Cross-Border Payment and Settlement Systems
Junengda Electric plans to partner with global payment platforms like Stripe and Binance Pay to access mainstream stablecoin payment channels such as USDC and USDT. This will enable overseas customers to pay directly in stablecoins, reducing fund settlement time from 3–5 working days to minutes while avoiding high SWIFT system fees.
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Building a Supply Chain Finance Ecosystem
Junengda Electric will collaborate with financial institutions to launch a stablecoin-based supply chain finance platform. Upstream suppliers can convert accounts receivable into stablecoin assets through the platform to obtain real-time liquidity support. Drawing on the application experience of Tether (USDT) in supply chains, this model ensures transaction transparency and immutability via blockchain technology while reducing financing costs. By the end of 2025, the platform is expected to cover over 80% of core suppliers, with an annual financing scale exceeding ¥200 million.
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Digital Currency Asset Allocation and Risk Management
To tackle global financial market volatility, Junengda Electric launched a stablecoin reserve plan.
The company converted part of its USD foreign exchange reserves into compliant stablecoins like USDC.
This allocation keeps asset liquidity and generates 3–5% annual yields via DeFi protocols such as Aave and Compound.
The returns are triple those of traditional USD deposits
Industry Trends and Policy Support
Stablecoins have become a critical component of the global financial infrastructure. The U.S. GENIUS Act legislatively defines the regulatory framework for stablecoins, requiring issuers to hold full USD or short-term Treasury bond reserves to reinforce compliance. Financial hubs like Hong Kong and Singapore have also launched stablecoin sandbox programs to promote their use in cross-border trade.
In manufacturing, the value of stablecoins is increasingly evident. For instance, Russia’s use of USDT in oil trade allows Chinese suppliers to bypass Western sanctions, boosting transaction efficiency by 80%. This model offers replicable experience for the transformer industry: building a deintermediated trading network via stablecoins can effectively address geopolitical risks and trade barriers.
Expert Insights: Technology-Driven Industrial Upgrading
Professor Zhang Jianhua from Tsinghua University’s PBC School of Finance noted, “Stablecoins offer significant advantages in cross-border payments, especially for large-value and high-frequency transaction scenarios like electrical equipment. Junengda Electric’s exploration will set a benchmark for the industry, driving deep integration between manufacturing and digital finance.”
The International Energy Agency (IEA) predicts the global transformer market will exceed $120 billion by 2030. Digital payments and supply chain finance are becoming focal points of competition. Junengda Electric leverages stablecoins to enhance its competitiveness. It aims to lead industry standard-setting and gain a global market edge.
Junengda Electric’s Call to Action
Junengda Electric invites industry peers to jointly participate in building a “stablecoin + electrical equipment” ecosystem, creating a more efficient and transparent global supply chain through technological innovation and resource integration.
About Junengda Electric
As a leading Chinese transformer manufacturer, Junengda Electric specializes in R&D and export of energy-efficient power equipment. With products certified by CE, UL, and other international standards, the company serves over 50 countries and regions globally. Guided by the philosophy of “technology-driven green smart manufacturing,” it continues to explore digital transformation paths, striving to become a core supplier of global energy infrastructure.