(Yicai Global) July 5 –- A unit of Chinese internet firm Sohu has set up a blockchain research institute to explore the technology's application to online finance. 

Fox Fintech's lab will utilize blockchain's tamper-proof, decentralized nature to reduce credit costs in the financial sector and promote the growth of peer-to-peer lending, state-backed Economic Daily reported.

The company will heavily invest in blockchain technology R&D in the hopes of making more efficient, secure and intelligent risk management and transactions, as well as more convenient financial services, said Alex Ho, founder and chief executive of the Beijing-based firm.

Fox Fintech, earlier named as Souyidai, was founded in 2014. The firm's core business includes P2P lending, consumer finance, and big data credit reporting. 

Editor: Emmi Laine