Zheshang Bank, a private lender in East China, becomes the first Chinese banking instituting to successfully complete the issuance of securities while utilizing a Blockchain. The total amount of these securities was $66 mln.
Trading asset-backed securities with Blockchain
The issuance was conducted with the help of a Blockchain-powered technology that was specifically created by Zheshang Bank to give registered companies an ability to conduct invoice transactions without a middleman. Every user of their distributed network will be able to directly come in contact with a counterparty, which essentially allows cutting financial expenses. Any firm is free to register on the aforementioned network.
Can China get away with banning crypto?
Beijing may be extremely hawkish about cryptocurrencies, but, like many other anti-crypto countries, it is open for Blockchain. There have already been more than 500 Blockchain-related patents, surpassing such major crypto hubs like the US and South Korea. A local retail giant Alibaba submitted 43 of these patents that cover healthcare, design and other spheres.
As U.Today reported just a week ago, China is actively working on the development of the distributed ledger technology, going as far as issuing guides about the Blockchain for its government officials. However, the question remains whether China’s crackdown on crypto will affect its chances to become the leader in Blockchain innovations.