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 for a car purchase.