Blockchain Helps Trust Companies Layout ABS Business ——An Asset Securitization Project As An Example

As a property institutional arrangement,trusts have two institutional functions:property transfer and property management,and are one of the four pillars of China's modern financial system.Due to the mismatch between the regulatory system of trusts and their development speed,as well as the inability of trust companies to cut off shortterm interests in their business and stay away from their original business for a long period of time,trust companies have been labeled as "shadow banks",channelized roles,rigid payments,etc.,and the real risk is hidden while it may also bring huge liquidity risks to the market.In 2018,under the regulatory environment of strengthening financial supervision and preventing financial risks,the new regulations on asset management,which are closely related to the trust industry,were officially released,prompting the trust industry to return to the framework of the regulatory system.The guidelines of the new capital management regulations for the trust industry are mainly: breaking rigid exchange payments,conversion of non-standard to standard,leverage constraints,net worth management,and elimination of multi-layer nesting and channels.The policy has forced the trust industry to accelerate its transformation and return to its business roots.During the three-year transition period,asset securitization business has become one of the favored transformation directions for trust companies because of its broad market space and compliance with regulatory policy guidelines.Due to their own limitations,trust companies are mainly responsible for marginal work with low added value in practice,and the core work of such business is often undertaken by other financial institutions,especially in the corporate asset securitization business.In the road of trust transformation,Thesis focuses on exploring the feasibility of trust companies using blockchain technology to make up for some of their shortcomings in capital management capabilities,enhance their competitiveness in the capital management field,and help trust companies build a full chain of asset securitization service business.Based on the traditional business model of trust companies and its problems and pitfalls,The thesis clarifies that trust companies must change the way they have been operating for many years and seek a new business development model.The analysis of the current situation of trusts in the transition period reveals that asset securitization trusts are one of the promising areas for transformation.Trust companies in transition are facing three major pressures: policy,internal and external,which make it difficult for them to successfully complete the role change.Second,based on the analysis of a trust company's involvement in asset securitization business,it is clear that the trust company has not touched its core business.Finally,it is proposed that blockchain technology can enhance the trust company's effectiveness at three levels: asset mining,product design,and operation management.In addition,it is proposed that blockchain technology can be used to promote the trust company's core business of asset securitization in practice,and a business model incorporating the technology in key aspects is designed for the case of the thesis to promote the trust company's transition from marginalization to the strategic layout of the whole process.