Chinese Banking Giant Issues $1.3 Billion in Securities on a Blockchain

Bank of Communications has completed a major issuance of residential mortgage-backed securities (RMBSs) using a blockchain network.

Bank of Communications, one of the four state-owned commercial banks in China, has completed a major issuance of residential mortgage-backed securities (RMBSs) using a blockchain network.

China Securities Times, the mouthpiece of Chinese financial regulators, reported on Thursday that the banking giant issued a total of 9.3 billion yuan (or around $1.3 billion) worth of RMBSs via its proprietary blockchain network, Jucai Chain.

According to a document dated Sept. 27 that outlines details of the issuance, the Bank of Communications was the main issuer with China International Capital Corporation as lead underwriter and book runner for the offering. Other co-underwriters included the Industrial and Commercial Bank of China and China Merchants Bank.

By moving the credit data of the mortgages onto a distributed network, different parties along the issuance process are able to view the most up-to-date information and conduct due diligence and settle transactions in a peer-to-peer fashion, the report said.

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