Editor's Note: This article comes fromInterchain Pulse (ID: HiveEcon)Editor's Note: This article comes from
Interchain Pulse (ID: HiveEcon)
Interchain Pulse (ID: HiveEcon)
On June 11, Pioneer Fund, a well-known public offering fund, announced the use of blockchain technology to issue a $146 million ABS. The participating institutions also included BNY Mellon, Citi, and State Street. )wait.
It is worth mentioning that the blockchain technology provider used this time comes from Symbiont. In 2017, Hang Seng Intercontinental Holdings (Hong Kong) Co., Ltd., a wholly-owned subsidiary of the Chinese listed company Hang Seng Electronics (600570), invested US$4 million in it. Accounting for 4.65% of the shares. As we all know, Hang Seng Electronics is an Ali company, and Ant Financial Services indirectly holds its controlling stake.
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In the same year, JD Finance and Jianyuan Capital announced the joint issuance of an ABS project for automobile financial leasing based on blockchain technology, with a project scale of 400 million yuan.
When it comes to digital assets, blockchain investors will think of native tokens issued based on blockchain. After the U.S. Securities Regulatory Commission believed that the Telegram token, which raised $1.7 billion, violated U.S. securities laws, this road has become narrower and narrower, and currently only the STO window is left.
However, digitizing the original assets through the blockchain has become a wider and wider road to growing digital assets. Among so many asset classes, ABS is particularly suitable.
ABS (Asset-backedSecuritie) is asset securitization. Nowadays, securities are basically digitized. It only needs to upload key data to the chain, and ABS can easily use the blockchain data credible, penetrable, smart contract automatic execution, etc. Technical features improve issuance efficiency and reduce issuance risks.
On a global scale, China is an early attempt to establish blockchain + ABS. In 2016, Jinqiu Co., Ltd. released the RobotABS asset securitization intelligent cloud platform. In December of that year, Jinqiu Co., Ltd. also received a fixed increase of 100 million yuan from Zhongnan Construction. Originally, Zhongnan Construction hoped to rely on the Group's resources in real estate REITs, hotel chains, co-working offices, supply chain finance, and factoring to fully support Jinqiu in building China's No. 1 asset securitization platform.
However, in 2017 and 2018, due to the rampant issuance of tokens and then returning to zero, the blockchain was once stigmatized. Zhongnan Construction withdrew from Jinqiu shares on the grounds of reducing risks in emerging industries. The dream of China's No. 1 asset securitization platform was also shattered.
But in 2017, the entry of Baidu and JD.com injected new technical strength into the blockchain + ABS.
In September 2017, Tianfeng Securities and Baidu Finance (Du Xiaoman Finance) issued the first exchange ABS product based on blockchain technology in China - "Baidu-Changan Xinsheng-Tianfeng 2017 Phase I ABS". The underlying asset is the car loan.
In the same year, JD Finance and Jianyuan Capital announced the joint issuance of an ABS project for automobile financial leasing based on blockchain technology, with a project scale of 400 million yuan.
Subsequently, the army of brokerages joined the team of blockchain + ABS. Including Guotai Junan, Debon Securities, GF Securities, Huatai Securities, and Huabao Securities all launched blockchain-based ABS products from 2018 to 2019.
As suppliers of funds, China's banking institutions have also joined the field. Bank of Communications launched the "Jucai Chain" asset securitization platform in June 2018. At the beginning of 2019, Qulian Technology built an ABS project management platform for the credit card center of China Merchants Bank. In 2019, Shanghai Pudong Development Bank and Baidu cooperated to make related products.
Zheshang Bank is relatively well-known in the banking industry. In August 2017, Qulian Technology cooperated with Zheshang Bank to launch the industry's first enterprise "receivables chain platform" based on blockchain technology. Then, Zheshang Bank sold the accounts receivable in ABS. The most recent case is that at the beginning of June this year, China Zheshang Bank underwrote the issuance of "Lianxin 2020 Lianjie Phase I Asset-Backed Commercial Paper". The project is one of the first five pilot projects of ABCP products launched by the China Interbank Market Institutional Investors Association. It is also the first collective ABCP in the country, with an issuance scale of 120 million yuan. ABCP refers to short-term securitization products issued by single or multiple enterprises (sponsors) using accounts receivable, bills, etc. as underlying assets.
Subsequently, the army of brokerages joined the team of blockchain + ABS. Including Guotai Junan, Debon Securities, GF Securities, Huatai Securities, and Huabao Securities all launched blockchain-based ABS products from 2018 to 2019.
As suppliers of funds, China's banking institutions have also joined the field. Bank of Communications launched the "Jucai Chain" asset securitization platform in June 2018. At the beginning of 2019, Qulian Technology built an ABS project management platform for the credit card center of China Merchants Bank. In 2019, Shanghai Pudong Development Bank and Baidu cooperated to make related products.
In the U.S. market, the implementation of blockchain + ABS is concentrated this year.
In March of this year, a company called Figure Technologies announced that it had issued a loan securitization product supported by blockchain technology. Also participating were Jefferies Group (structuring agent, lead underwriter and warehouse provider), Nomura Securities International Limited (underwriter), Tilden Park Capital (loan contributor and subordinate note buyer) and a large asset manager Corporation (Senior Note Buyer).
Then there was the ABS product issued by Vanguard Fund on June 11.
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take the easy way
The above-mentioned blockchain + ABS products, regardless of China or the United States, rely on the original asset providers, financial institutions and other related service organizations, and blockchain technology companies only provide technical services among them.
The advantage is that it can realize the rapid implementation of blockchain technology and the rapid generation of digital assets based on blockchain. Because the business is ready-made, the channel is ready-made, and the service organization is ready-made. There may be inter-agency games, such as where the assets can be moved. The efficiency of the blockchain is improved and the process of the intermediate link is reduced. The interests of some institutions in the intermediate link may be damaged to a certain extent.
But as a whole, blockchain+ABS can achieve the global optimum. When the overall benefit is greater than a single point, more forces will promote the development of blockchain + ABS.
However, when the blockchain generates digital assets in many other fields, it is often necessary to change some business logic, or increase or decrease some institutions on the chain, which is more resistant. For example, in the field of entertainment, blockchain needs to generate digital assets, which changes the current circulation mode of entertainment assets. Copyright assets created by users themselves can be traded peer-to-peer without relying on platforms like China Literature.
This is also the reason why native blockchain assets cannot land. Native blockchain projects usually take care of the entire process of asset generation, issuance, and financing, because their assets can be generated out of thin air through white papers, and do not require accounting, auditing, etc. Such a platform, even if the truth comes to light, will be resisted by existing institutions everywhere.
ABS is one of the most labor-saving areas for blockchain-based digital asset generation.
On the other hand, this market is also large enough. In 2019, China alone issued 2.34 trillion yuan of various ABS products throughout the year, and the stock scale exceeded 4 trillion yuan. Innovative products such as the first floating-rate credit asset-backed securities linked to LPR, the first scalable REITs, and credit protection tools based on asset-backed securities were successfully issued. The market for ABS products in the United States is more mature, with a scale of more than 3.5 trillion US dollars.
Gains and losses. Although this road is convenient and easy to follow, it is far from meeting the efficiency expectations of blockchain-based digital asset flows.
