China Zheshang Bank Issues Securities Worth $66 Million on Blockchain

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Zheshang Bank, among the largest privately held commercial banks in China, has completed the issuance of $66 million securities to investors by using its proprietary blockchain platform. Based on public documents, the bank filed its prospectus at the Shanghai Clearing House on Aug. 13 with a plan to issue securities worth 400 million yuan, or $66 million, which are backed by a portfolio of account receivables from various corporations. Based on a report by China Securities Journal on Monday, the bank then completed the issuance on Aug. 17 and became among the first institutions within the country to have eased transactions for securities backed by a set of assets through blockchain.

The platform, known as Lianrong, was designed in house by the bank with the purpose of allowing registered companies to broadcast their accounts receivable assets to prospective investors to further have them settle transactions of those bills as securities in a peer-to peer fashion. By buying a company’s account receivables, an investor basically prepays the company’s pending bill at a discount and hopes to collect a complete amount at a later stage from the party that’s accountable for making the original payment. Founded in 2004, Zheshang Bank is among the 12 publicly traded commercial banks in China that have launched different moves into the blockchain market.

However it isn’t the only financial institution that’s turning to blockchain in specifically offering asset backed securities. JD Finance, a subsidiary of the Chinese ecommerce giant JD.com, additionally Announced a plan in June to partner with another commercially traded commercial bank to establish a comparable product through a distributed network. Zheshang Bank image via Wikipedia. The leader in blockchain news, CoinDesk is a media outlet that strives for the greatest journalistic standards and adheres to a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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