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Zheshang Bank, one of the largest private commercial banks in China, has completed the issuance of $ 66 million in securities to investors using its proprietary blockchain platform.
Based on public documents, the bank submitted its prospectus to the Shanghai Clearing House on August 13 with a plan to issue securities worth 400 million yuan, or $ 66 million, which are backed by a credit portfolio of different companies.
According to a report from the China Securities Journal on Monday, the bank subsequently completed the issue on August 17 and became one of the country's first institutions to facilitate transactions for the securities secured by a group of assets via blockchain.
The platform, called Lianrong, was designed internally by the bank to allow registered companies to pass on their credit assets to potential investors and to allow them to settle the transactions of these invoices as peer-to-peer.
By purchasing the accounts receivables of a company, an investor essentially reimburses the pending invoice of the company at a discount and expects to collect an entire amount at a later stage from the party responsible for the original payment.
Founded in 2004, Zheshang Bank is one of 12 listed commercial banks in China that have launched various blockchain moves.
However, it is not the only financial institution that is addressing the blockchain specifically by offering asset-backed securities [19659002] JD Finance, a subsidiary of the Chinese e-commerce giant JD.com, has also announced a plan in June to collaborate with another commercial bank listed on the stock exchange to launch a similar product via a distributed network.
Zheshang Bank image via Wikipedia
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