A Bank of China building
A Bank of China building. CoinDesk

One of the four major commercial banks in China, Bank of China, announced in a statement on Friday that it has released 20 billion Yuan in blockchain-based bonds for small businesses that own blockchain platforms.

The Beijing-based bank also mentioned in the statement that it concluded pricing and bond issuance for the first period this week. The two-year bond will come with a 3.25% coupon rate and is aimed at raising funds to support small and micro-sized businesses.

The state-owned bank used its own blockchain network to give out digital certificates of ownership, create underwriter groups and record proof of transactions.


China seeks to prop up its entrepreneurs by providing efficient access to capital through bond issuance. The bank said that it had lent 404 billion Yuan to more than 410,000 small and micro-sized enterprises by the month of September.

The top use of blockchain for Chinese banks and financial services firms is financing for small and medium-sized enterprises, or SMEs. Two examples follow.

In February 2018, ICBC, a Chinese multinational bank, started to buy and collect stubborn account receivables from SMEs through their blockchain platform.

Ant Financial, the highest valued Fintech Company in the world, announced that in three months time it would launch its blockchain system to give SMEs dependable financial services.

Away from China, to accelerate bond issuance, Santander issued $20 million bonds that traded on Ethereum back in September.