Chinese Construction Bank Unveils Its Blockchain-based Cash-Management Platform

0
417
China-construction-bank

China Construction Bank (CCB), the second-largest bank in the world in terms of managed assets, has rolled out a Blockchain-based platform geared towards the commercial factoring industry. 

As reported by Sina Tech, a Chinese media outlet, CCB intends to eliminate significant risks associated with its refactoring business while effectively enhancing its operations. The report also confirmed that the bank would provide participants with access to shared data. 

Notably, factoring serves as one of the most relied upon cash-management tools of companies with cash flow problems. It is one of the oldest known methods of business financing wherein a company puts its account receivables up for sale to a third party. The buyer often gets the deal with a considerable discount. 

According to CCB’s official announcement, small and micro-businesses that need immediate cash can use the platform in selling their financial claims. Furthermore, CCB would be able to purchase what the factoring companies have already bought from businesses having financial troubles via the platform. 

As per the report of another news outlet ChainNews, CCB would also provide other services such as receivables management and credit risk guarantee. Notably, export companies seeking short-term liquidity can benefit a lot from these financial services since the platform can speed up the process of receiving payments from importers. 

The new factoring platform is the latest addition to the bank’s long list of Blockchain-based projects geared towards the improvement of its financial services and operations. Back in October, CCB has launched the upgraded version of BCTrade, its platform for trade finance, after the transaction volume hit $53 billion. The improvements made allowed CCB to expand the reach of its factoring and forfeiting services not only in the country but abroad as well. 

Meanwhile, in a separate effort of providing financial support for small and micro businesses, the Bank of China confirmed that its bonds worth $2.8 billion is now ready for issuance. The pricing has been completed, and Chinese enterprises with cash flow problems can apply for loans via the bank’s Blockchain-based platform. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here