Private Chinese bank completes issuance of securities on the blockchain

One of China’s largest private financial institutions, it has reported the completion of a securities issuance worth $66 million using its blockchain platform.

The commercial bank has thus become one of the first financial institutions in China to have completed an issuance of this type over a blockchain network. It’s platform, called Lianrong, was designed to allow registered firms to transmit account receivable assets to potential investors as well as to enable them to settle invoice transactions as securities peer-to-peer.

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The FI filed a prospectus with the Shangai Clearing House on 13th August, announcing it would back the securities with an account receivables portfolio from various firms. The issuance was completed on 17th August.

Zheshang Bank and 12 more

Zheshang Bank is among 12 publicly traded banks in China that are currently using blockchain technology to offer asset-backed securities as well as other open ledger technology initiatives.

In June, JD Finance, a subsidiary of China-based e-commerce giant JD.com, revealed a plan to launch a similar DLT-powered investment tool.

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