According to a report by China Securities Times on Wednesday, September 27th, with the adoption of blockchain technology, $1.3 billion of residential mortgage-backed securities (RMBS) have been successfully issued by The Chinese state-owned Bank of Communications (BoCom).
Ranked as the 5th largest bank in China, BoCom has been working on an initiative – an independently developed platform named Juicai Chain to release 9.3 billion yuan worth of RMBS, approximately $1.3 billion.
Blockchain allows all parties taking part in the loan to perform asset tracking, cash flow management, and other business operations. China Securities Times points out that the application of blockchain will reduce the risks, shorten the RMBS issuance time together by providing assets’ authority.
Xinhua – major local newspaper announced that the launch of Juicai Chain was executed back in June by BoCom. In July, the first phase of releasing digital RMBS started to carry out, with the first due diligence conducted in August. It has been demonstrated that the BoCom digital mortgage base will be available for financial intermediaries such as PricewaterhouseCoopers, multinational law firm Zhonglun, amongst several others.
According to a report in June of Cointelegraph, the Agricultural Bank of China – which is known as the 4th largest bank in the country, issued its very first loan worth $300,000 based on the quality of the blockchain platform. Furthermore, the fact that China took a step closer in blockchain technology has been considered as evidence for legal disputes.
Real estate is one of the industries actively experimenting with decentralized solutions. For instance, the Russian branch of Raiffeisen Bank issued its initial electronic mortgage, and the Netherlands plans to transfer all of its records to blockchain within the span of 1-3 years.
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