JD Finance, a subsidiary of Chinese e-commerce giant JD.com, announced on Wednesday that it is planning to issue asset-backed securities (ABSs) on a blockchain.
According to a report from the Securities Times, an outlet of the China Securities Regulatory Commission, JD Finance established the trial in partnership with Huatai Securities, a brokerage firm that will underwrite the issuance, as well as Xingye Bank, which will act as a trust.
JD Finance aims to issue the securities using a consortium blockchain that will see each party act as a node, recording the transactions in a transparent manner. The experiment sets out to ascertain if the blockchain can meet the demands of the various parties involved in the asset securitization process, such as issuers, underwriters and buyers…
Read Full: JD.com’s Finance Arm to Issue Asset-Backed Securities on a Blockchain