The first digital RMB application scenario in the security! Galaxy Securities' digital RMB investment over-the-counter financial products approved for launch

Interface News Reporter | Chen Jing

On May 19th, Galaxy Securities and Industrial and Commercial Bank of China announced that the first digital RMB application scenario in the securities market had been approved by the China Securities Regulatory Commission for launch. This marks that Galaxy Securities has become the first securities firm in the industry to invest in over-the-counter financial products through digital RMB.

In this pilot project, Galaxy Securities, in collaboration with Industrial and Commercial Bank of China, innovatively designed an application scenario for "digital RMB purchasing over-the-counter financial products under the Fang depository system" using technologies such as digital RMB payment and settlement, loadable smart contracts, traceability, and non illegal counterfeiting.

In November 2021, the Beijing Regulatory Bureau of the China Securities Regulatory Commission and the Beijing Local Financial Supervision and Administration announced the first batch of 16 projects to be included in the capital market financial technology innovation pilot program. The pilot project declared by Galaxy Securities and Industrial and Commercial Bank of China is the only one involving the application of digital RMB capital market, and also the industry's first.

In this pilot project, Galaxy Securities innovatively designed three application scenarios, namely "Digital RMB Purchase Payment Financial Services", "Digital RMB Investment and Purchase Off site Financial Products under the Tripartite Depository System", and "Digital RMB Purchase Off site Financial Products under the Digital Financial Wallet System". Among them, "Digital RMB Purchase Payment Financial Service", as the first digital RMB application scenario in the securities industry, has been successfully launched on Galaxy Securities.

Luo Liming, a member of the Party Committee and Vice President of Galaxy Securities, introduced that the advantages of using digital RMB to invest in over-the-counter financial products are: placing orders 24/7 to meet investment needs at any time; Utilizing the "payment settlement" feature of digital RMB to improve fund flow efficiency, redeeming and withdrawing cash one day in advance; The digital RMB is' loadable smart contracts', 'traceable', and 'non illegal forgery and copying', effectively ensuring the security of investors' funds. This function has been officially launched, and eligible users can bind to a digital RMB wallet to make payments using digital RMB when investing in over-the-counter financial products such as public funds.

On the other hand, digital RMB can effectively improve payment and settlement efficiency. After redemption, the funds will also be available for withdrawal one day in advance, which can effectively improve customers' investment experience and fund circulation efficiency.

With the optimization and upgrading of subsequent services, the time for product redemption is expected to be further shortened, and customers can achieve flexible allocation of funds, "said the project leader.

In recent years, with the deepening of pilot projects, the digital RMB has shown a trend of driving the evolution of the payment ecosystem. It not only significantly optimizes the functions of accounting units and payment functions, but also significantly improves the efficiency of payment and settlement.

According to public data, there are currently over 212 million individual stock investors and over 720 million fund investors in China, indicating a significant increase in investment enthusiasm among investors. As of now, Galaxy Securities has approximately 15 million brokerage clients.

It is reported that the initial intention of Galaxy Securities and Industrial and Commercial Bank of China's pilot work on the application of digital RMB in the securities industry is to ensure the safety of customer funds, prevent illegal transactions such as money laundering, reduce transaction costs, and improve financial operational efficiency, in order to provide investors with a more convenient, safe, efficient, and intelligent service experience.

Some people in the industry believe that the inclusion of digital RMB business in the securities industry will, on the one hand, help the digital RMB to be tested and applied on a larger scale and stimulate more innovative exploration of the scene. On the other hand, for the securities companies and the securities industry, it will play a demonstration role in reducing costs and increasing efficiency, more effectively protect the legitimate rights and interests of investors, help the securities industry Digital transformation, and improve the efficiency of inclusive financial services.