China Construction Bank (CCB) has partnered with Fusang, the Hong Kong-based digital asset exchange, to issue $ 3 billion worth of debt on a blockchain. Announced Wednesday, this is the first offering of blockchain digital securities from a Chinese bank.
The bond is called Longbond SR Notes and will be directly available to retail investors.
Usually, Chinese bonds are only accessible to institutional and professional investors with a minimum investment amount of tens of thousands of yuan. However, Longbonds can only be purchased for as little as $ 100.
These bonds will offer a 0.75% yield to maturity, much higher than the average rate of 0.25% on bonds of other Chinese banks.
“Issuers no longer need to operate in a fragmented environment with multiple process flows as FUSANG’s end-to-end platform simplifies their needs, from issuance to listing, in one place,” said Henry Chong. CEO of Fusang.
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“Global investors can now benefit from access to an investment previously reserved only for larger institutions, along with low and transparent fees.”
Regulated in Malaysia
According to the official press release, the bond will be issued by the Labuan-regulated Malaysian branch of the Chinese lender and can be traded on the digital asset exchange from Friday against the US dollar and Bitcoin.
Fusang is also licensed by Labuan as a stock exchange.
“CCB Labuan is delighted to play its role as lead arranger for the first publicly traded debt on a blockchain,” said Felix Feng Qi, principal officer of CCB Labuan. “CCB Labuan will continue to work to expand technological boundaries to provide value-added products and services to our customers, customers and associates.”
If the Longbonds manage to garner public interest in such investment instruments, Fusang plans to further extend its partnership with the Chinese lender on issuing in other currencies, including the yuan.
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