May 16 Beijing– Baidu Finance announced issuance of the first blockchain-based ABS product in China with 424 million yuan worth. The product is jointly released with Baiqian Leasing, Huaneng Trust. The product contains private equity ABS for personal car rental. The adoption of blockchain technology provides operation transparency for the asset, which greatly enhance the efficiency, safety and traceability of the product.

As per the report, blockchain is adopted to solve the trust issue. Features like decentralized storage, asymmetric secret key and consensus algorithm are introduced. Baidu also test some new features by adding some “adaptive modifications”. Attacks on the network protocol is simulated on Baidu security lab to ensure the safety of the network and the protocol. The consortium blockchain could process up to million TPS scale. AI developed by Baidu is also integrated in the program. Authority hierarchy and asymmetric encryption are deployed to ensure information security. The report also mentions the enabling of smart control on its bottom layer.
It’s more like a pilot program for the next move of Baidu on its blockchain development roadmap.

Baidu, Alibaba and Tencent has been regarded the top 3 internet conglomerates in China.
Tencent has released the consortium blockchain platform: TrustSql in April. Alibaba has adopted blockchain technology for its charity project with CRCF.  Baidu seems to be lagging behind the race while JD is catching up. China Unionpay test the 1st consortium blockchain with JD Finance. With the strong performance of JD in Q1 2017, people are thinking of “BAT” should be changed to “JAT”.
Baidu Financial Services Business Group (FSG) was established on December 14, 2015. Financial business has been lifted to a strategic position in Baidu. Baidu financial is composed of consumer finance, wallet payment, financial management, Internet banking, Internet insurance and other sectors. According to the 2016 Q4 report, Baidu wallet has over 100 million activated accounts. Baxin bank has been officially approved by the CBRC. The total value of OTC ABS assets issued by Baidu Financial OTC has been over 5 billion yuan by 2016.