Bank of China Debuts Use of Blockchain to Issue Bonds for Micro and Small Enterprises

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Big state-owned lender Bank of China (BOC) has made use of blockchain technology to facilitate the issuance of bonds to raise funds for micro and small enterprises.

According to a report from Sina BOC issued 20 billion yuan in MSE loan finance bonds in early December, using its own independently developed blockchain-based bond issuance system.

The MSE finance bonds had a maturity of two years and a coupon rate of 3.25%, and were 2.7 times oversubscribed. Funds raised via the bonds will be used to make loans to Chinese MSE’s.

BOC’s blockchain-based bond issuance system reportedly covers the three stages of:

  • Bond issuance preparations;
  • Bookkeeping;
  • Pricing and allocation.

The system also encompasses a total of eight functions including:

  1. Bond creation,
  2. Maintenance of key information,
  3. Public announcement issuance,
  4. Formation of underwriting syndicates,
  5. Management of online documents,
  6. Bond subscription,
  7. Order summary,
  8. Pricing and allocation.
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