Analysis On The Application Of Blockchain In ABS

In recent years,the development of the asset securitization market in China has maintained a good momentum,and the scale of ABS products for consumer finance has continued to expand.However,under the current background of imperfect credit information system,lack of uniform standards for asset assessment,inaccurate risk management system,and imperfect pricing mechanism,it is difficult for investors to judge the true risks of ABS products.At the same time,credit issues will also become the main source of financing obstacle.It is very difficult for traditional financial institutions to conduct innovative services because of their supervision.The incoordination of market development and regulatory policies has also given an opportunity for Blockchain technology development.The Blockchain realizes the true credit history of the transaction parties under the premise of realizing the intermediation,reduces the risk premium and the operating cost to reduce the asset price,and effectively solves the problems of credit asymmetry and financing in the asset securitization financing process.This article analyzes the asset securitization business of the Baidu Financial Services Group(hereinafter referred to as Baidu Finance)as a case study,and analyzes the specific process of Baidu Finance applying Blockchain technology to asset securitization.On September 19,2017,Baidu Financial led the issuance of “Baixin 2017-1”,which is the first exchange-based Blockchain technology based ABS in China.Baidu Financial's leading issue of this product is of great significance to the domestic asset securitization market.On the one hand,it means that the new technology has taken a new step in the application of asset securitization.On the other hand,it also means that new technologies have begun to win the market and regulator's accredited.From a variety of perspectives,the introduction of Blockchain into the process of asset securitization conforms to the trend of China's economic restructuring and is of great significance for stabilizing financial markets,meeting low-cost financing demands of the real economy,and improving economic efficiency.This paper analyzes the practice of Blockchain application asset securitization by studying the core advantages of Blockchain and the practice of asset securitization,and summarizes the Blockchain's efficiency in improving asset securitization and reducing risks.Experience and prospect its application prospects,with a view to the practical operation of the company has a certain guiding significance.