China’s First Auto Loan signs US$6B blockchain deal

Katie McDonaldSeptember 17, 2018
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Global fintech and digital assets company Ideanomics has struck a three-year US$6 billion deal through blockchain with one of China’s largest auto financing organisations.

The deal’s financing will be undertaken globally via fixed income and asset-backed security offerings through a hybrid of both traditional distribution channels as well as Velocity Ledger’s blockchain-based offering.

Under the agreement Ideanomics will drive two financing campaigns, one in China and the second across global markets through its international alliance network.

The financing is to ensure compliance with government mandated electric vehicle upgrades to China’s ride-share vehicles, including China’s top ride-sharing services providers Didi-Uber and Capital.

“This exemplary opportunity represents the blockchain-based fintech services that Ideanomics has set forth to accomplish as part of our company’s fixed income financial digital asset strategy,” said Ideanomics co-CEO and chairman Bruno Wu.

“It truly represents a paradigm shift in global financing activities and Ideanomics will continue to set a trailblazing path which will benefit all aspects of automotive and ride-sharing industries.”

China is the largest ride-sharing market in the world with reported revenue of US$29.7 billion, in 2018 according to Statista data sources.

This is followed by the United States, with $17.2 billion in 2018.

Statista estimated that the market is expected to grow annually at a rate of 18 per cent through to 2022, with an anticipated $58 billion in market volume in the same period.

“We are very much looking forward to working with Ideanomics as we move forward on this high-impact lease financing agreement,” said First Auto Loan CEO Guo Chao.

“The modernisation of infrastructure in China is paramount to the success of our national economy and converting our existing fleet of ride-sharing vehicles from conventional combustion systems to those of modern and electric systems speaks volumes of our focus on energy conservation and efficiency.”

 

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