Popular

Most of China's biggest banks are already using blockchains

Quick Take

  • All of China’s state-owned banks and some of China’s most prominent tech giants plan to deploy implementations of blockchain tech 
  • A white paper by one of the biggest banks in China shows that the blockchain is being used for trade settlement, supply chain management, financing, and other areas in the financial services sector
  • 72 financial services companies have registered with the government to provide blockchain-based services
advertisement

More than 70 financial services firms in China, including every state-owned bank and the biggest tech companies, are deploying blockchain-based financial applications.

That's according to the Industrial and Commercial Bank of China (ICBC), one of the nation's largest state-owned banks. 

In a new white paper,  the ICBC said Chinese banks are planning to use blockchains in areas like trade financing, supply chain management, settlement, digital invoices, and other applications.

Four of China's largest tech companies—Baidu, Alibaba, Tencent, and JD—are also working on their own blockchain-based financial service applications. As the paper notes, most of these blockchains will be permission-based. 

Source: ICBC blockchain financial application white paper

The document also details some specific applications. For instance, ICBC itself has built a cross-border trade settlement platform between China and Europe that uses distributed ledger technology and smart contracts to authenticate and sync shipping information shared by companies, warehouses, customs, banks, and government agencies. 

According to the white paper, banks and enterprises in China are using blockchains to manage funds, control supply chains, issue securities, and track customer loyalty points.

Around 420 blockchain companies – 17% of which are in finance. One hundred twenty blockchain-based financial services projects – were registered with the Cyberspace Administration of China at the end of 2019, says the ICBC.


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Investing giant Pimco is considering trading cryptocurrencies

Pimco, a $2 trillion investment firm, could potentially begin trading spot cryptocurrencies, the firm’s chief investment officer Daniel Ivascyn confirmed to CNBC.  The firm, which has engaged with the market via crypto-linked securities, is now looking at “trading certain cryptocurrencies as part of our trend-following strategies or quant-oriented strategies, then doing more work on the […]
Read Full Story
Oct 20, 2021, 6:59PM UTC

Here's how one of NYSE's largest market makers is breaking into DeFi

On this episode of The Scoop, founder Ari Rubenstein and founder & CEO Ryan Sheftel joined host Frank Chaparro to discuss the launch of their new crypto firm, called Radkl. Radkl, which was born out of trading firm and New York Stock Exchange market maker GTS, is a new digital asset trading business. GTS currently […]
Read Full Story
Oct 20, 2021, 2:23PM UTC
More