A groundbreaking $24 billion deal between China’s largest electric bus operator (NTS) and Seven Stars Cloud Group (Nasdaq:SSC) was recently signed which will create financing products through SSC’s blockchain ecosystem. SSC stocks soar 149% in premarket trade Monday.
China continues to invest in Blockchain
The Chinese government has a very ambitious plan to replace all fossil-fuel powered buses with environment-friendly electric buses by the year 2021. To fund and reach this ambitious goal the NTS and SCC deal is designed to to issue fixed income financing products, through a global strategic alliance network, and operating within the global regulatory sphere.
Achieving this target will require upgrades and mandatory replacements of massive proportions with estimated market size $145 billion USD. NTS has operations spread throughout China, which includes a charging station network, electric bus lease and sales programs, mobile application for payments and several other real-time services making the whole deal a game-changer.
“This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed, contract. It represents a new era and a paradigm shift in the way in which we view asset-based financial products…”
Both Chinese and International markets affected
The terms of the deal state that the SSC will enable the provisioning of two well-defined financing campaigns. First campaign will be tailored towards the Chinese market while the second will be designed for launch across the global markets. SSC will conduct the Chinese campaign which it targets to generate nearly 60 Billion RMB or approximately $9b by selling fixed income products.
For the global market campaign, SSC will exclusively provide both asset digitization and fixed income products to add $15 billion over the next three years. The Chairman and CEO of SSC Mr. Bruno Wo hailed this deal as a paradigm-shift as it will merge a thriving asset-based financial product with the blockchain-based tokenization and fractionalization.
Jihong Huang, President of NTS also welcomed the deal by stating that all of the biggest bus manufacturers in China are supporting this initiative as it can unlock untapped liquidity and hike business values through artificial intelligence (AI) and blockchain-centric capabilities of SSC.
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