Chinese Banks to Create Credit Blacklist on Blockchain

Suning Bank will place a list of suspicious borrowers in a distributed ledger to establish cooperation with other financial institutions
14 June 2018   269

The banking unit of Chinese retail giant Suning is testing a blockchain-based application that will allow banks to create a common list of customers with a bad credit history. This is reported by the CoinDesk.

According to the local edition of Sina Finance, Suning Bank will place a list of suspicious borrowers in a distributed ledger to establish cooperation with other financial institutions andd prevent fraud. Each participating institution becomes a node of the blockchain in the consortium and will have access to the original "black list" and will supplement it with their own data.

Suning Bank was founded in 2017. In September last year, together with the banks CITIC and Minsheng, it joined a consortium that uses a blockchain system to record transactions of domestic letters of credit.

In May 2018, the British fintech-company Billon announced the development of a solution for the Credit Information Bureau, which will store and delete client data using distributed registry technology.

Chinese Bank to Issue $66M Worth Securities on Blockchain

The Lianrong blockchain platform was launched by the bank to provide registered companies with the opportunity to distribute assets secured by accounts receivable to investors
21 August 2018   53

Zheshang Bank, one of the largest commercial financial institutes in China, issued securities worth $ 66 million through its proprietary blockchain platform. This is reported by CoinDesk.

On August 13, the bank submitted a prospectus to the Shanghai Clearing House. At the same time, representatives of Zheshang Bank reported that the securities will be secured by accounts receivable from various companies.

A few days later, the China Securities Journal reported that the bank issued these assets on August 17, becoming the first institution in the country to issue such securities.

The Lianrong blockchain platform was launched by the bank to provide registered companies with the opportunity to distribute assets secured by accounts receivable to investors.

Founded in 2004, Zheshang Bank is one of China's 12 publicly traded financial companies that launched various initiatives related to distributed registry technology over the past year and a half.