State-Owned Chinese Bank to Finance Small Businesses With Blockchain Tech

The China Construction Bank will help finance small businesses using a blockchain platform.

AccessTimeIconDec 10, 2019 at 12:00 p.m. UTC
Updated May 9, 2023 at 3:04 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

China Construction Bank, one of the nation's "Big Four" state-owned commercial banks, launched a blockchain-based platform to support the financing of small businesses on Friday. 

The bank aims to help small and micro companies sell their financial claims such as short-term notes receivable at a discount in return for immediate cash payments via the platform, according to a report by ChainNews. 

  • 80% of Meme Coin Performance Occurs During Asia Trading Hours: 10x Research Founder
    00:55
    80% of Meme Coin Performance Occurs During Asia Trading Hours: 10x Research Founder
  • Standard Chartered Bullish on Bitcoin; SOL Crosses $200 Amid Meme Coin Frenzy
    02:16
    Standard Chartered Bullish on Bitcoin; SOL Crosses $200 Amid Meme Coin Frenzy
  • What's Driving the Rally in Reddit Community Token MOON?
    01:06
    What's Driving the Rally in Reddit Community Token MOON?
  • Tokenization and Stablecoins Continue to Be TradFi's Top Interest in Crypto: Expert
    00:53
    Tokenization and Stablecoins Continue to Be TradFi's Top Interest in Crypto: Expert
  • The new platform will enable the bank to buy financial claims from factoring companies that had previously purchased the assets from small businesses, the report said. 

    The bank will also offer other financial services, including credit risk guarantee, and receivables management via the platform. 

    Many of the financial services could be used for export companies to gain short-term liquidity since they tend to go through a time-consuming process to receive the payments from their importers. 

    The new platform is the latest effort for the bank to develop such trade finance services on blockchain-based platforms. 

    The bank upgraded its trade finance platform BCTrade in October after it broke $53 billion transaction volume since its launch in April 2018. 

    The version of the platform expands its factoring and forfeiting services across different banking and non-bank institutions in China and abroad. 

    The China Construction Bank joins the Bank of China in tapping blockchain to provide support for small businesses. The Bank of China announced Friday that it had completed the pricing and issuance of some $2.8 billion in bonds for loans made to small enterprises using blockchain technology.

    Several countries have been trying out blockchain-based trade finance services. 

    Trade finance blockchain Marco Polo, built by TradeIX and R3, has onboarded more than 20 global banks and piloted its first transaction between Germany and Russia in the same month.

    Asian banking giant DBS, Trafigura Group and the Singaporean government also planned to facilitate global trade by a blockchain-based platform.  

    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.