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Bank of China Issues $2.8B in Blockchain Bonds.

Robert Morel

Robert Morel

Robert Morel is a Full Stack Software Developer. Specializing in legacy applications. I have a particular interest in server management, operations and provisioning of deployment pipelines.
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The Bank of China has issued 20 billion yuan, or about $2.8 billion, in blockchain-based bonds to small businesses.

The Bank of China, one of the four major commercial banks in China, has issued 20 billion yuan ($2.8 billion) in blockchain bonds for small and micro-sized enterprises with their own blockchain platforms.

The bank announced Friday (Dec 6) that it completed pricing and issuance of the bonds for the first period this week and the two-year bond will come to the market with 3.25% coupon rate, according to a statement.

The blockchain-based bonds were issued for small and micro-sized enterprises, bringing the bank’s total issuance of bonds for such entities to 404B yuan ($57.7B). This is the first such use of blockchain technology in China, the bank claims.

Financing for small and medium sized enterprises (SMEs) has been one of the major blockchain use cases for banks and financial services companies in China. 

Industrial and Commerce Bank of China (ICBC), the largest bank by assets in the world, started to offer factoring services (transactions where a business sells account receivables to a third party at a discount in return for immediate cash payment) to SMEs on their blockchain platform in February 2018. 

Ant Financial, the fintech arm of tech giant Alibaba, announced it would launch its own blockchain platform to provide SMEs with more reliable financial services in the next three months.

Robert Morel

Robert Morel

Robert Morel is a Full Stack Software Developer. Specializing in legacy applications. I have a particular interest in server management, operations and provisioning of deployment pipelines.
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