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One of the largest banks in the world has withdrawn a $ 3 billion blockchain bond that was to be traded on a Malaysian digital stock exchange. China Construction Bank had initially postponed trading on the bond before withdrawing it.
Reports emerged on November 11, revealing that CCB would have listed the $ 3 billion bond on Fusang’s digital assets exchange in Labuan, Malaysia. The CCB branch in Labuan, a more popular offshore financial haven as a tax haven, was the lead arranger and sponsor of the bond’s listing.
The branch was supposed to issue the bond through Longbond Ltd, a special purpose vehicle created to issue digital bonds.
However, as Reuters reports, CCB sent a letter to the Fusang exchange postponing the listing on November 13, one day before the bond was traded. A week later, on November 20, the bank informed the exchange that it had withdrawn the bond and that the issue would not continue.
In its statement, FUSANG revealed that CCB had notified the Labuan Financial Services Authority of the cancellation. It said it would ensure “an orderly withdrawal of all related listing processes and procedures and initiated the return of all investor funds.”
Bank CCB did not provide any reason for the suspension of the historic bond, Fusang CEO Henry Chong said. He added:
“While we are disappointed that this list has been suspended, there have been no legal, regulatory, operational or technical issues with the FUSANG platform or the IPO process and submission. The overwhelming investor interest and demand for this program $ 3 billion historic was a fantastic validation of the digital issuance and listing process we created. “
According to a report by the South China Morning Post, the cancellation may have to do with the People’s Bank of China’s digital yuan efforts. “CCB’s digital bonds, which can be bought and traded using US dollars or bitcoin, appear to undermine efforts to safeguard its currency sovereignty,” the paper said.
See also: CoinGeek Live panel on The Future of Exchanges & Trading in a Tokenized World
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