One of the largest banks in China, Bank of Communication (BoCom), the end of September, real estate-backed securities in the value of US $ 1.3 billion on a company’s own Blockchain network. The Bank stressed again the practical Use of the Blockchain technology. It is the first Time in history that a Distributed Ledger technology is used for the output of such securities.
RMBS (Residential Mortgage-Backed Securities), mortgage-backed securities, which are purchased because of their long-term prospects of return on investment, often from large banks. That, however, this happens on the Blockchain, is a novelty. The Bank of Communication used a self-developed Jucai-Chain Blockchain. You follow the purpose, “to enable more transparency and security in the value of paper contracts”. The Bank presented the Blockchain for the first time in June of 2018 and began a month later, the data feed.
In August, the Bank commented on the launch of the Blockchain, as follows:
“The participating parties the ability to view all relevant information in real time to keep track of. In this way, you can convince yourself of the authenticity of the underlying Assets.“
Blockchain for securities – a Win-Win Situation
In fact, the offer seems to bring a lot of advantages: All parties to be able to draw business transactions on the Blockchain are completely individually and in real time. You also have at any time insight into current developments and are not dependent on third parties. Also auditors and tax consultants to get easier access to the data – whether this is from the point of view of privacy advocates, however progress, one may doubt.
Blockchain in the world of banking: there is A clear Trend
The Bank of Communication, thus continuing the Trend to implement more and more Blockchain applications in the banking sector. So have already commissioned in August, the world Bank, the Commonwealth Bank of Australia with the creation of the Bonds on Blockchain-based, and only at the end of September opened the first German Blockchain-Bank. Not only private banks, crypto open currencies, even Central banks such as the Bank of Thailand to go with this Trend, by starting to develop their own crypto-currencies. In this respect, a partially paradoxical Situation arises: Bitcoin and the Blockchain are lined up to create an Alternative to the banks. These include, of all things, to the great sponsors of the Blockchain.