JD. Com to Issue Asset-Backed Securities on Blockchain

JD Finance will launch the project in partnership with the brokerage firm Huatai Securities
13 June 2018   303

JD Finance, a subsidiary of the Chinese giant of electronic commerce JD.com, plans to issue asset-backed securities (ABS) using blockchain technology, CoinDesk reports.

According to the Securities Times report, the division of the Securities Commission of China, JD Finance will launch the project in partnership with the brokerage firm Huatai Securities, which will guarantee the release of financial instruments. The project will also involve Xingye Bank, which will be entrusted with the functions of a trust company.

According to representatives of JD, blockchain technology can significantly increase the transparency of operations. The experiment will determine whether this technology is able to meet the requirements of various parties involved in securities transactions, including issuers, underwriters and buyers.

According to local media, in August 2017 the company conducted a preliminary test of the technology of the distributed registry, issuing a loan forĀ a car purchase.

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   55

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.