China-based Zheshang Bank, a privately held commercial banks, has issued $66 million securities to investors by using its proprietary blockchain platform.
The Chinese bank filed its prospectus to the Shanghai Clearing House on August 13, 2018 with the goal to issue securities worth 400 million yuan, or $66 million. The securities are backed by various corporate portfolios of account receivables.
The bank has successfully completed the issuance on August 17, 2018 becoming one of the forerunners in the country to have processed transactions for securities backed by a group of assets through blockchain.
Lianrong, is a blockchain platform, which developed in house by the Zheshang Bank with the goal of providing registered companies to showcase their receivable assets to investors and to allow them settle transactions as a securities in a peer-to-peer manner.
The purpose of purchasing a company’s account receivables will allow an investor to prepay the entity’s pending invoice at a lower rate and then to collect a full amount at a later stage from the party that is responsible for making the original payment.
Zheshang Bank is one of the 12 publicly-traded commercial banks to have launched various features using blockchain technology in China.