The Chinese state-owned Bank of Communications (BoCom) successfully issued $ 1.3 billion of residential mortgage-backed securities (RMBS) using blockchain technology, writes the Securities Times newspaper on Wednesday 27 September.
BoCom – the fifth largest bank in China according to recent S & P Global statistics – used an independently developed platform called the Juicai Chain to issue 9.3 billion yuan of RMBS, which is about $ 1.3 billion .
Using the blockchain, all parties participating in the loan are able to monitor activities, manage cash flow and perform other commercial operations. As China Securities Times writes, the use of blockchain will help to reduce risks and shorten the issuing time of RMBS, as well as providing the authenticity of resources.
According to the leading local Xinhua newspaper, Juicai Chain was launched by BoCom in June. The first digital RMBS release phase began in July, with the first due diligence conducted in August. The publication stated that the BoCom digital mortgage base will be available to intermediaries such as the global consulting firm PricewaterhouseCoopers, the multinational law firm Zhonglun and others.
As Cointelegraph wrote in July, China's fourth largest bank, the Agricultural Bank of China, issued its first $ 300,000 loan based on the blockchain. Furthermore, in September, China took a step towards accepting blockchain technology as evidence for legal disputes.
Decentralized solutions are actively tested in the real estate sector. For example, in September, the Russian branch of the Raiffeisen Bank issued its first electronic mortgage and the land registry of the Dutch state plans to move all its registers into blockchain within one to three years.