JD Finance to pilot the issue of asset-backed securities on blockchain

13 June 2018

JD FinanceJD Finance, an arm of a Beijing-based ecommerce company JD.com, reportedly starts a pilot test of a blockchain platform for issuing asset-backed securities in partnership with other major financial institutions in the country.

The report published by the Securities Times, a unit of the China Securities Regulatory Commission, unveils that JD Finance is partnering over the pilot project with Huatai Securities, which will be underwriting the issue of securities, and Xingye Bank to be acting as a trust.

It is further reported that JD Finance will be issuing the securities on the platform of a consortium blockchain, where each party will be operating as a node, and the transactions will be accounted and recorded in a transparent and open manner. The trial is aimed at making sure whether blockchain technologies may serve better for the purposes and demands of the stakeholders involved into the process of securitization, including issuers, underwriting agencies and purchasers.

This is not the first time when JD Finance experiments with the use of blockchain tech. Last August the company issued a car loan on the basis of the blockchain in a move to try the technology for financial services.

In April this year the company also made an announcement about its plans to introduce a blockchain-as-a-service system following the trend set by other hi-tech companies, such as Huawei, IBM and others.

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