China is making trade-based blockchain-based securities

China is making trade-based blockchain-based securities

JD Finance, a subsidiary of China e-commerce giant JD.com, announced on Wednesday that it plans to build Blockchain-based asset-backed securities (ABS). China aims to provide better services to its clients through its trading base Blockchain-based securities.

Chinese trading giant Blockchain-based securities aim for transparency
According to a report by the Securities Times, a news site linked to the China Securities Regulatory Commission, JD Finance launched a joint research with Huatai Securities, a brokerage house, as well as Xingye Bank, which will act as a collateral. JD Finance seeks to issue securities using the consortium Blockchain, which sees each customer as a node and records transactions in a transparent manner. This experiment will focus on determining whether Blockchain can meet the demands of various parties involved in the asset securitization process, such as issuers, insurers and buyers.

JD finance In 2015, we released ABS product that is not linked to Blockchain
In 2015, JD finance first released ABS, which is not tied to the traditional Blockchain. It also offered an online service that helped other companies increase their capital through exports. This typically emerged in the form of a portfolio of credit or credit card debt, which can be further processed in the secondary market. According to a local news source, the company gave a car loan in August 2017 using the Blockchain platform. This transaction was the first transaction in the financial services of the company to use distributed ledger technology (DLT). JD.com also announced in April that it will launch a proprietary Blockchain service platform this year, along with other technology giants such as Huawei, Oracle, IBM and Microsoft.