$2.8 billion bonds are expected to help SMEs running their own blockchain platforms
Bank of China intends to support small businesses with their own blockchain platforms, thus presenting blockchain-based bonds with a 3.25% coupon rate for two years.
The digital certificates are issued with the help of blockchain, helping to prove ownership, to create underwriters’ groups, and to document the transaction. Small and medium-sized businesses have always been prioritized cases for blockchain use. This support aims to provide entrepreneurs with more access to capital in China.
In 2018, Industrial and Commerce Bank of China (ICBC) launched factoring services for the blockchain-based SMEs. It means that a business gives a third party a discount in case it makes an immediate cash payment, while buying an account reverciables.
Alibaba’s affiliate company Ant Financial announced it plans to launch its blockchain platform in 3 months for SMEs to provide them with more secure financial services.