Seven Stars Cloud Group Inc (NASDAQ:SSC), a cloud computing company has entered into a $24 billion deal to aid in the Chinese upgrade to its electric buses. The deal was signed on August 20, 2018, between the National Transportation Capacity Co Ltd (NTS) and Seven Stars. SSC will assist through its blockchain-based technology.

Through its global network of strategic associations, SSC will provide NTS with a fixed income lease for the next three years via its financing services. The global network runs operations in compliance with existing regulations.

Seven Stars Cloud

Seven Stars Cloud is a fintech firm that focuses on digital assets and services. It customizes its platform for different business utilities by operating it as a Platform as a Service (PaaS). SSC works with firms that develop core digital assets.

The government of China has made it mandatory for all buses to be electric in the next three years. As a result, a newly created market for replacing and updating the existing buses is estimated to cost approximately $145 billion. Currently, NTS is the biggest electric buses service operator in China. Its services consist of a network of charging stations, lease financing, sales and data services that are in real time. Data services consist of facial recognition, maps, media as well as payments.

The deal

As per the agreement, via its international network, SSC will offer NTS two different financing options. While one financing option will be in China, the other one will be across international markets.

SSC will raise $8.75 billion through the selling of fixed income securities for the financing of the Chinese project. Since the financing will be spread over three years, it will hence amount to $2.9 billion per year.

Meanwhile, the technology firm will raise $15 billion for the international markets project’s financing. Consequently, it will exclusively offer asset digitization products as well as fixed income to fund the project for the three years. That translates to $5 billion each year for the project.

Seven Star Cloud’s CEO, Bruno Wu said, “This is a truly ground-breaking deal globally for blockchain-based fintech companies to gain such a large-scale, asset-backed contract.”