Zheshang Bank Issued Securities on Blockchain in Amount of 66 Million US Dollars
One of the largest private commercial banks in China, completed the process of issuing securities worth 66 million US dollars. For this, they used their own blockchain platform.
Based on public documents, Zheshang Bank submitted a project to the Shanghai Clearing House. Representatives of the bank assured that the return of securities will be completed, together with a portfolio of receivables from different corporations. It is worth noting that the bank has become one of the first institutions in the country that was able to realize the issue of securities through the blockchain network.
The proposed Lianrong blockchain platform was developed by the bank's specialists in order to allow registered companies to broadcast receivables assets to potential investors. In addition, it must provide the possibility of concluding invoices as peer-to-peer securities.
Acquiring the company's receivables, the investor essentially pays for the company's discounted account and expects to collect the full amount from the party that is responsible for making the initial payment.
It should be noted that Zheshang Bank was founded in 2004. He is one of 12 publicly traded commercial banks in China, which over the past 12-18 months have launched several initiative projects. It is worth saying that this banking institution isn't the only one in the country that uses blockchain.
So, the company JD Finance, which is the "daughter" of JD.com, several months ago announced plans to present a similar project.