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BlockchainBusiness & Finance

Blockchain Systems to be Deployed in All Public Buses in China

The unfortunate history of China with cryptocurrencies had no impact on its views regarding the utility and advantages of blockchain technology. With thousands of startups being formed every day, blockchain is also being incorporated in the previously existing sectors. The recent development has been that, The Seven Stars Cloud Group, Inc. has announced a three-year exclusive $24 billion deal with National Transportation Capacity Co. Ltd. Seven Stars is a leading global technology organization which is responsible for producing digital assets, and its distribution. The company is responsible for issuing fixed income lease financing-based products. This is to make upgrades in all the electric buses. The lease is to be issued through a global strategic alliance network, which operates in a regulatory compliant manner.

Seven Stars Cloud Group has made the deal with the government to conduct two financing campaigns, one inside China and the other across global markets. In China, $8.75 billion has to be raised through the sale of fixed income products in the financing activities over a period of three years. For financing across the global markets, SSC will incorporate fixed income and asset digitization products to raise $15 billion over the same period.

Bruno Wu, chairman and CEO of Seven Stars Cloud also released a statement to the press, laying emphasis on how the ground breaking technology, blockchain, can be fundamentally important to the new technological revolutions that are going to be incorporated in the years to come.

This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed, contract. It represents a new era and a paradigm shift in the way in which we view asset-based financial products; and it will serve as a window to the world on how asset value and liquidity can be unlocked by traditional industries as we take fixed income products into the digital era.

He added on,

 By combining regulated financial infrastructure, and the market confidence in asset-based products, with AI-enhanced risk management and the dynamics of blockchain-enabled fractionalization, securitization, tokenization, and global trading of token-based offerings, we are delivering the next-generation of financial products, which will be compelling for both asset-rich industries and investors alike. It’s an exciting time for SSC, and we’re extremely pleased and honored to partner with NTS on this offering.

Jihong Huang, President of National Transportation Capacity Co Ltd, also commended SSC for its role in the development and incorporation of the technology in the public transportation systems.

We’re delighted to enter into this deal, which is historic in terms of fixed-income asset digitization. SSC has taken traditional lease financing business offerings and rejuvenated them with today’s new technology, in which flexibility, fractionalization, and global accessibility are key. A combination of SSC’s Blockchain and AI technologies, combined with our shared mission for unlocking both liquidity and enterprise value through asset digitization, will result in a significant transformation of the entire lease financing-based fixed income market.

The Chinese government has plans to replace all buses with the electric ones by 2021 i.e. within the next three years. The expenses would bring business that were amount to a whopping $145 billion, in order to make all the planned changes and obtain fully electric bus operations. Huang also told that the 10 leading bus manufacturers are all overboard with these advancements saying,

Each of the leading ten bus manufacturers in China strongly back NTS in this initiative, and the success of this transaction with SSC will place asset-backed digital offerings firmly on the map.

Overall, blockchain has a myriad of applications, which are being incorporated in various parts of the world, even in China, where one of its products has amassed a notorious reputation i.e. cryptocurrencies. With this initiative of upgrading the public transporting systems with blockchain technology, the entire lease financing-based fixed income market is expected to be revolutionized.

Hassaan Malik

Co-founder of BlockPublisher, Hassaan is a technologist at heart with a keen interest in blockchain, cryptos and traditional financial markets. Email: hassaan@blockpublisher.com, hassaanmalek@gmail.com

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