Bank of China has issued 20 billion yuan ($2.8 billion) in blockchain-based bonds for small and micro-sized enterprises with their own blockchain platforms.
On Dec. 6, Bank of China announced in a statement that it completed pricing and issuance of bonds for the first period of this week and the two-year bond will come to the market with a 3.25% coupon rate.
The bank said in the statement:
“We have used our own blockchain-based bond issuance system in the process, This is also the first bond issuance ledger system that is based on blockchain in the country.”
Bank Of China Uses Its Own Blockchain System
Bank Of China uses its own blockchain system to issue digital certificates proving ownership, form groups of underwriters and document proof of transactions.
<img width="1390" height="917" src="https://i1.wp.com/www.cryptonewspoint.com/wp-content/uploads/2019/12/gettyimages-844081956.jpg?fit=1024%2C676&ssl=1" alt="blockchain transaction" class="wp-image-6787 lazyload" />
The issuing of the bonds is to support entrepreneurs with more efficient access to capital. The bank added that as of September the bank lent 404 billion yuan ($57.7 billion) to more than 410,000 small and micro-sized enterprises.
Banks and financial services companies in China have taken up in financing for small and medium-sized enterprises (SMEs), symbolizing one of the major use cases of blockchains.
Source: Cointelegraph Image Credit: Getty Images| SCMP