China’s Zheshang Bank issues $66m through blockchain
China’s Zheshang Bank has issued securities worth $66m through its own blockchain platform.
The securities were backed with a portfolio of account receivables from various corporations.
Zheshang’s proprietary, peer-to-peer blockchain platform, known as Lianrong, enables registered companies to offer their accounts receivable assets to investors.
In this way, investors can purchase firms’ pending invoices at a discount, with the prospect of collecting the full amounts from debtors at a later stage.
Chinese banks have unveiled various blockchain projects over the past couple of years.
In June, Zheshang rival JD Finance, a unit of Chinese e-commerce group JD.com, unveiled plans to launch a similar platform to Lianrong.
China’s Zheshang Bank becomes one of the first banks to have announced a transaction of this kind through a blockchain platform.
The size of the transaction, at $66m, also points to the huge potential offered by blockchain technology in this area.