Bank of China issues $2.8 billion worth of blockchain based financial bonds
Funds reported to have been issued to Chinese small and micro-sized companies
The Bank of China has reportedly issued 20 billion yuan ($2.8 bn, £2.12bn, €2.52bn) in blockchain-based financial bonds for small and micro-enterprises.
According to local news outlet Sina Finance, the funds are specifically used to issue loans to these Chinese small and micro-sized companies to support economic development.
The bond is a two-year fixed interest rate product with a final coupon rate of 3.25 per cent.
As of the end of September, the Bank of China issued around 404 billion yuan ($57.7bn) to 410,000 small and micro enterprise customers, representing an increase of 35 per cent from a year ago.
Micro-enterprises generally have fewer than 10 employees, while small companies have up to 50 employees.
In this issue, the Bank of China has also used the self-developed blockchain bond issuance system which covers three stages, including bond issuance preparation, bookkeeping filing and pricing and placement.
As reported by official Chinese state-run publication Xinhua, China’s blockchain development will see a compound annual growth rate of 65.7 per cent from 2018 to 2023, and technology will exceed $2bn by the end of 2023.
Citing a study by American market intelligence firm IDC, it stated that in 2019 most of China’s blockchain spending went to the banking sector, while discrete manufacturing, retail, professional services and process manufacturing were among the top industries that attracted blockchain spending.
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