Chinese e-commerce titan JD.com has unveiled plans to use blockchains to facilitate investment in asset-backed securities (ABS).
The “JD Finance – Huatai Asset Management No. 19 JD Baitiao Accounts Receivable Creditor’s Rights Asset-Backed Special Plan” (京东金融-华泰资管19号京东白条应收账款债权资产支持专项计划) has already been successfully launched and will be listed on the Shenzhen exchange.
The accounts receivable of JD.com’s consumer finance vehicle Baitiao serve as the underlying assets for the ABS, with Huatai Securities acting as the plan manager, Industrial Bank serving as the trustee institution, and JD Finance the asset services entity.
The project involves the establishment of a consortium blockchain to power JD Finance’s ABS cloud platform.
According to Hao Yanshan, a marketing executive with JD Finance, the consortium blockchain must satisfy the needs of various participants in the asset securitisation business, in order to be able to fully demonstrate the application value of blockchain technology.
JD.Com has already made multiple forays into blockchain applications, announcing in March the launch of its Blockchain as a Service Platform (BaaS) in collaboration with leading tech players including IBM, Microsoft and Oracle.
The e-commerce giant has also developed a blockchain solution for the monitoring of meat supply chains in China.
The China Securities Regulatory Commission appears sanguine about the project, pointing to the potential for it to curb risks for ABS investors.
“The currently established asset securitisation business management system can facilitate the prevention of risk in relation to various ABS products, protecting the interests of investors.”