Major Chinese bank CCB launches blockchain refactoring platform
World's second-largest financial institution by operated asserts trials decentralized technologies
China Construction Bank, which is the world's second-largest bank by operated assets, is trialing a refactoring platform based on blockchain, according to Sina Tech.
Factoring is a type of business that implies buying other firm's invoices at a discount. The companies normally resort to factoring to receive the amount of cash needed.
The main goal of the new platform is to improve the bank's commercial factoring business. CCB expects to trace operations via blockchain and to reduce risks related with the privacy of participants' data.
Earlier this year, CCB released the second version of its blockchain platform BCTrade. The bank claims that the innovative tool has already reached $50 billion in cumulative transaction volume.
Following the launch, sources told Chinese media Xinhua that BCTrade 2.0 is also used to facilitate domestic letters of credit, forfeiting, and international factoring. The platform connects over 54 institutions and banks, both local and global.
CCB is not the only major Chinese bank that uses blockchain in its operations. For instance, the Bank of China has recently issued $2.8bn worth of financial bonds on blockchain.
The Chinese government is actively supporting blockchain, and the country's enterprises are now developing various decentralized solutions. According to Xinhua, the country'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.