On Wednesday, an affiliate of China’s state-owned steel producer Baosteel launched the “Ouyeel Chain” for deposit certificates. For Ouyeel Business Cloud, this is the second blockchain initiative and part of a larger roadmap. While previous initiatives focused on finance, this one is more about certificates, traceability and regulatory supervision. Earlier in the week, Ouyeel held a conference with the Shanghai Futures Exchange, although that wasn’t included in the blockchain announcement.
Back in 2015, Baosteel set up an online e-commerce steel portal, Ouye Yunshang. The first blockchain solution was unveiled in 2018 for supply chain finance. When a large buyer purchases steel, it will issue a certificate confirming that it owes the money to the small supplier. This blockchain-based credit certificate or “Tongbao” is then used by the supplier to raise finance. So far, more than 150 billion yuan ($21.7 billion) has been issued via the platform from eight banks.
Since then, the Tongbao assets have been bundled up as an Asset Backed Security (ABS) and listed on the Shanghai Stock Exchange.
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