China’s Blockchain conquest seems to be on the roll with new developments making headlines every day. CCB or China Construction Bank has launched a Blockchain-backed refactoring platform. Considered as the world’s second-largest bank, CCB has targeted the commercial factoring sector intending to reinforce the operations surrounding it, while minimizing the risks associated with it. A spokesperson from the bank mentioned that the Blockchain platform enables multiple participants in the factoring business to share data that significantly reduces the risk factor.
The primary role of factoring enterprises is to represent the third party entities that purchase the invoices of businesses at a reduced rate to help the respective business to raise finances.
It was just this October that CCB released the sequel of its Blockchain-based trading platform, naming it BCTrade 2.0. Post-release it reportedly experienced a substantial surge in cumulative transaction volume coming up to $50 billion.
As reported by Cointelegraph, this latest development has allowed China Construction Bank, which is one of the four major banks in the People’s Republic of China, to empower the digitization of financial and trade services among 54 domestic and foreign organizations. This includes several foreign and state-run banks.
Drawing a parallel to this development, the Bank of China has issued $2.8 billion worth of Blockchain-based financial bonds, mainly for small and micro businesses and organizations. It was reported by Sina Finance, that the bonds will be particularly used to grant loans to smaller businesses in China, to provide support to the overall economic development.