Chinese commercial bank, China Zheshang Bank, has issued securities worth $16.9 billion on a blockchain network, iHodl Russia has learned.
The issuance of securities was implemented as part of the pilot program of the National Association of Financial Market Institutional Investors (NAFMII).
The maturity of asset-backed commercial papers (ABCP) is reportedly six months. The NAFMII representative said that with the help of blockchain, companies have direct access to the markets, which greatly simplifies the attraction of financing.
The ABCPs are designed for small and medium businesses, which often face difficulties in obtaining loans without channels to enter open markets.
In addition, the new tool integrates supply chain financing with representatives of the above enterprises, which simplifies their production processes. Zheshang Bank is one of the hundred largest world banks in terms of assets ($238.7 billion).
In 2014, the bank ranked 208 in the "Global Banking 1000" list by the UK based Banker magazine.
iHodl earlier reported that China's biggest investment & technology conglomerate Tencent Holdings will invest $70 billion over the next five years in new technology infrastructure including blockchain, cloud computing, artificial intelligence and cybersecurity.
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