The Agricultural Bank of China (ABC), the world's fourth-largest bank by assets, issued the first loan with the help of a blockchain, Cointelegraph reports.
ABC, owned by the state and ranking itself among the "big foursome" of the largest banks in China, said that it issued a loan of $ 300,000 provided by a piece of agricultural land in Guizhou Province.
ABC will "generate blocks together with local residents, land and resource departments, and agriculture and livestock management departments with the help of the blockchain", and adds that the loan is aimed at "supporting the local tea industry".
In the blockchain-project, third parties (including the local branch of the People's Bank of China) are involved, serving as nodes that verify the correctness of credit data.
In the future, according to the representatives of the bank, they will start issuing other types of loans with the help of a blockchain. The distributed registry technology allows ABC to solve the problem with customers who take loans in different banks for the same piece of land.