Zheshang Bank issues $66mn of securities on blockchain platform
Zheshang Bank has completed an issuance of securities worth $66 million through its blockchain platform Lianrong. According to a report from China Securities Journal the bank has become one of the first institutions in China to have made such a move over a blockchain network.
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An investor essentially pays for the firm's pending invoice at a discount before collecting the full amount later from the party liable for the original payment.
Lianrong was designed in-house by the bank to allow registered companies to broadcast account receivable assets to potential investors and to further let them settle peer-to-peer invoice transactions as securities.
In just four years, Zheshang’s assets have risen by 130% to $243 billion at the end of 2017, making it one of China’s fastest-growing privately-owned commercial banks with more than 60% of Zheshang Bank’s fastest-growing assets from businesses in the asset management and interbank markets.