World’s second-largest bank to sell $3 billion in blockchain-based bonds for Bitcoin

The Chinese China Construction Bank (CCB), in collaboration with the cryptocurrency exchange Fusang, will issue debt securities worth $3 billion on the blockchain. The South China Morning Post reports this.

Starting on November 13, the certificates will be exchangeable for Bitcoin via Fusang Exchange, licensed in Labuan, Malaysia.

A local unit of China Construction Bank will handle the issue of three-month bonds. They are issued with a minimum denomination of $100.

The bonds will be sold in the form of certificates of deposit. The denomination they certify is typically measured in tens of thousands of yuan. However, tokenisation will allow retail investors to purchase small fractions of this instrument.

According to CCB representatives, the blockchain-based bond issue is aimed at ‘bringing fintech closer to broader financial markets’.

If successful, Fusang expects to establish cooperation with state-owned banks to issue securities in other currencies, including yuan.

According to SPGlobal, China Construction Bank is the second-largest bank in the world. As of April 2020, it had assets of $3.6 trillion under management.

Earlier in September, the Singapore Exchange issued blockchain-based bonds worth $400 million with a five-and-a-half-year maturity.

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