China’s central bank digital currency (CBDC) pilot testing continues to onboard new use cases for the digital yuan. The country has now recorded its first instance of Intellectual Property (IP) financing on the CBDC platform.
The Rural Commerce Bank of Zhangjiagang, located in China’s Suzhou province, has issued the first-ever digital yuan loan backed by intellectual property as collateral. In a press release, the Suzhou Market Supervision Bureau confirmed that a loan of 500,000 yuan (about $74,000) was issued to an unnamed business to fill its capital turnover gap.
According to local reports, banks in Suzhou first started offering digital yuan loans to businesses and individuals in July. The amounts range from 70,000 yuan to 1.5 million yuan ($10,363-$222,074). The scheme has also been introduced in other provinces, including Shaanxi Province, as well as the city of Guangzhou.