Specifically, the paper, equivalent to $16.93 billion, was reportedly generated as an initiative of the National Association of Financial Market Institutional Investors’s (NAFMII) pilot program for ABCPs.
The ABCP – goes by the name “Lianxin 2020 Lianjie First Phase Asset-backed Commercial Paper” – with an effective time frame reportedly lasting to 6 months, with the duration of the next issuance it to be decided later.
A NAFMII spokesperson reportedly stated that the involvement of blockchain would equip corporations with a “direct channel to markets, helping to greatly increase the accessibility of business financing.”
The Lianxin ABCP release will reportedly SMEs is accessible to support financially, via “increasing the accessibility of financing for SMEs that have difficulty with financing via direct debt issuance”.
The paper will reportedly also finalize integration of supply chain finance with small, medium, and micro-enterprises for further assistance with their production.
The central bank of China and different large banks are reportedly trying to increase the adoption rate of blockchain in traditional finance, with the PBoC came up with a proposal for a blockchain-powered trade finance platform, for the Guangdong-Hong Kong-Macao Greater Bay Area.