China Construction Bank (CCB), the world’s second-biggest bank by operated assets, has officially launched its blockchain-based refactoring platform.
Targeting commercial factoring business, CCB aims to bolster operations and reduce major risks in its refactoring business while providing shared data access by multiple participants, Chinese news outlet Sina Tech reports Dec. 6.
As reported, factoring firms represent third parties that buy businesses’ invoices at a discount in order to help those businesses raise funds.
CCB’s blockchain trading platform reached $50 billion in cumulative volume in October
The news comes after CCB officially released the second version of its blockchain trading platform in October. Dubbed BCTrade 2.0, the product reportedly reached $50 billion in cumulative transaction volume. According to sources, CCB’s blockchain trading financial platform reportedly facilitated domestic letters of credit, forfaiting, international factoring as well as refactoring.
By applying BCTrade, CCB, one of the “big four” banks in the People’s Republic of China, enables digitization of trade and financial services between more than 54 domestic and foreign institutions, including a number of state-run and foreign banks, as reported by Cointelegraph.
Chinese banks and blockchain
CCB’s new efforts in blockchain comes to light alongside a report on the Bank of China issuing $2.8 billion in blockchain-based special financial bonds for small and micro-enterprises. As originally reported by Sina Finance, the funds are specifically used to issue loans to these Chinese small and micro-sized companies to support their continued development in the economy.
Meanwhile, the People’s Bank of China, China’s central bank, is reportedly planning to launch a digital token to challenge the United States dollar.