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China Construction Bank, one of the nation’s four large state-owned banks, partnered with a Hong Kong-based fintech company Fusang launch the sale of $ 3 billion worth of debt securities using blockchain in hopes of reducing the costs of services traditionally associated with financial intermediaries.
The digital bonds, which will be listed on the Fusang Exchange, a Malaysia-based exchange that also facilitates cryptocurrency trading, can be bought for bitcoin or US dollars, according to a joint company statement Wednesday.
The bonds will be sold in the form of certificates of deposit, which global investors can purchase for as little as $ 100 and promise annualized interest of Libor plus 50 basis points at maturity, the statement said.
The deal was agreed upon by the China Construction Bank branch in Labuan, Malaysia, with its chief officer Felix Feng Qi describing it as the “first publicly traded debt security on a blockchain.” “China Construction Bank Labuan will continue to work to expand technological boundaries to provide value-added products and services to our customers, customers and associates,” said Feng.
In recent years, blockchain technology has been widely used in various areas of China, such as tax invoicing and e-commerce. In the month of September, Alibaba’s Ant Group launched a blockchain-based international trade payment platform in an effort to streamline the cross-border trade process.
Contact reporter Ding Yi ([email protected])
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