Chinese commercial bank releases $16.9 billion commercial paper on blockchain

Chinese commercial bank, Zhe­shang Bank, issued an asset-backed commercial paper using block chain technology as part of the National Association of Financial Market Institutional Investors (NAFMII) project.

The asset-backed commercial papers (ABCP) act as a short-term investment aiding companies in meeting their immediate goals.

Bond issuance can be difficult for small, medium and micro-enterprises as they do not have a connection with open markets. The launch of the “Lianxin 2020 Lian­jie First Phase Asset-backed Commercial Paper” can help small and medium enterprises finding financial support more easily.

Major banks in China, including the central bank, lead blockchain innovation in traditional finance. People’s Bank of China’s deputy governor Fan Yifei advocated for accelerated blockchain adoption strategy earlier in May.

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