Zheshang Bank Turns to Blockchain

While the cryptocurrency market has seen a recent slowdown in price movement, the enthusiasm from companies wanting to implement and discover the potential of blockchain technology has on the contrary increased. When it comes to the supply chain, retail giants, banks, and manufacturers, the term ‘blockchain’ is very widely known.

Many have speculated that blockchain will revolutionize all of the aforementioned industries and leave competitors who are reluctant to integrate a distributed network-like system in the dust. Some companies have begun to feel the pressure, especially when it comes to the Asian markets. China has seen a plethora of retailers announcing plans to release blockchain-powered tools, including JD.com, the NASDAQ listed Chinese e-commerce platform, which stated its plans to release asset-backed securities on the blockchain.

The latest news of an already established company looking to blockchain to ease costs and enable faster processes is the Chinese commercial banking giant Zheshang Bank. Zheshang stands as one of the largest privately held commercial banks in China, and publicly released documents detail that Zheshang Bank has recently completed issuing approximately $66M in securities upon a blockchain.

According to recently released documents via the official Shanghai holding site, Zheshang completed the issue of approximately $66M worth of securities on an internally built blockchain as of August 17. The blockchain works as a portal for public and verified companies to list accounts receivable and then allows said companies to settle transactions in a peer-to-peer fashion; this will protect against double spending and enable faster settlement times for publicly listed and registered companies.

“These systems are vital for the development and growth of the blockchain ecosystem. Zheshang can enable companies to offer securities in a fashion that will automatically protect against fraud, double spending, and allow investments to be made in a globally verified fashion. It is because of the initiative to integrate such important and efficient systems that Zheshang has been able to issue over $66M in such a short amount of time. By putting these accounts receivable on the blockchain, they are enabling a virtual escrow system, which automatically improves investor confidence.” - Dima Zaitsev, International PR Lead at ICOBox

Zheshang is one of the first large-scale companies to physically issue these asset-backed securities on a blockchain, rather than simply announcing plans to do so. While other conglomerates, investment banks, and publicly held companies have promised to issue blockchain protected assets in the near future, Zheshang has now set the bar a little higher with their quick and efficient efforts to bring blockchain to the investment world.