China’s Top Banks Push Blockchain Use, Announces Bond Issuance System and Refactoring Platform

China is gearing ahead with its development in blockchain and central bank digital currency (CBDC). One of the country’s top-most banks - Bank of China - has announced its new blockchain bond issuance system.

The local Chinese media outlet Sina reported that the Bank of China has already issued bond of 20 Billion Yuan on its issuance system. The bond will contribute in the growth of the local economy and will have a fixed interest rate for two years.

The blockchain-based system introduced by the Bank of China covers three important aspects: book keeping, bond issuance preparations, and pricing. The platform also has several different functions which can completely automate the bond-issuing process.

With the Chinese government now pushing the use of blockchain technology FinTech companies are working on moving all the loans and bonds on a distributed public ledger network.

In another news, China’s second largest bank - China Construction Bank (CCB) - has officially launched its blockchain-based refactoring platform. Using blockchain, CCB aims to mitigate the risks associated in refactoring business while simultaneously giving shared data access to multiple participants, report Sina Tech.

In October 2019, CCB released the second version of its blockchain trading platform dubbed BCTrade 2.0. As per the sources familiar with the matter, CCB’s blockchain trading financial platform facilitates domestic letters of credit, international factoring and refactoring, as well as forfaiting.

“China Construction Bank assigns qualified receivables from seller companies held by commercial factoring companies to provide one or more of the following financial services, including receivables financing, credit risk guarantees, receivables management, receivables Collection of collections, the service objects are factoring companies in the industry group, supply chain supporting factoring agents, etc” wrote the publication.

Launching its BCTrade platform, CCB becomes one of the big-four banks in China to offer digitisation of trade and financial service to 54 domestic and foreign institutions.