Chinese Bank Issues Securities Worth $66 Million on a Blockchain

One of the largest privately held commercial banks in China has completed the issuance of securities worth $66 million via blockchain.

AccessTimeIconAug 21, 2018 at 6:00 a.m. UTC
Updated Sep 13, 2021 at 8:18 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Zheshang Bank, one of the largest privately held commercial banks in China, has completed an issuance of securities worth $66 million using its proprietary blockchain platform.

Based on public documents, the bank filed a prospectus with the Shanghai Clearing House on Aug. 13 saying it would back the securities with a portfolio of account receivables from various corporations.

According to a report from China Securities Journal on Monday, the bank subsequently completed the issuance on Aug. 17, becoming one of the first institutions in the country to have made such an issuance over a blockchain network.

The blockchain platform, called Lianrong, was designed in-house by the bank to allow registered companies to broadcast account receivable assets to potential investors and to further let them settle invoice transactions as securities peer-to-peer.

By purchasing a firm's account receivables, an investor essentially pays for the firm's pending invoice at a discount and expects to later collect the full amount from the party liable for making the original payment.

Founded in 2004, Zheshang Bank is one of 12 publicly traded commercial banks in China that have launched various blockchain initiatives over the past 12–18 months.

Zheshang Bank is not the only financial institution turning to blockchain to specifically offer asset-backed securities.

JD Finance, a subsidiary of Chinese e-commerce giant JD.com, also announced a plan in June to launch a similar product via a distributed network in partnership with another commercial bank.

Zheshang Bank image via Wikipedia

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.