China\u2019s Zheshang Bank has issued $17 million worth of asset backed commercial paper via its financial supply chain blockchain. Zheshang Bank\u2019s use of a blockchain illustrates how the technology can be used to enhance traditional financial product transactions.\u00a0 What is an asset backed commercial paper? Asset-Backed Commercial Paper (ABCP) is a form of commercial paper collateralized by other financial assets. ABCP allows companies to sell their assets, such as accounts receivable and bills that can generate cash flow, and is usually purchased by financial institutions to generate short term gains. On June 5, Shanghai Clearing House approved its first batch of Asset-Backed Commercial Paper pilot projects. The first batch permits five companies, including Zheshang Bank, to issue ABCP; however, Zheshang Bank is the only company in the batch using a blockchain.\u00a0 "ABCP product characteristics and the concept of serving the real economy SMEs are very consistent with the long-explored supply chain financial innovation of Zheshang Bank and the practice of supporting the industrial chain to coordinate the resumption of production," said Shen Bin, general manager at the investment bank headquarters of Zheshang Bank. This is not Zheshang Bank\u2019s first blockchain venture. In 2017, Zheshang bank used a blockchain to issue a loan note worth 68 million. After that venture succeeded, the Zheshang blockchain picked up popularity. By June 2018, the Zheshang Bank blockchain processed 1,800 enterprises, and over 2,600 receivables worth more than $3.9 billion. While most of the world focuses on the digital currency ecosystem and related developments, China has been making strides when it comes to blockchain development. From different provinces in China incubating the research and development of blockchain projects to China's upcoming central bank digital currency, China seems to be making advancements in the blockchain and digital asset space at a much faster rate than other countries. Regardless of whether or not other countries are capable of moving as fast as China when it comes to blockchain and digital asset advancement, Zheshang Bank\u2019s use of the blockchain will serve as a precedent for financial institutions that are looking to implement a blockchain to improve their operations.