China Construction Bank (CCB) has partnered with Hong Kong-based digital asset exchange Fusang to issue $ 3 billion in debt securities on the blockchain. Reported by the South China Morning Post. According to the publication, this is the first time a Chinese bank has issued digital securities using distributed ledger technology.

The second largest bank in the world will issue bonds for $ 3 billion with the possibility of exchange for bitcoin

China Construction Bank (CCB) entered into cooperation with the Hong Kong exchange digital assets Fusang to issue $ 3 billion in debt securities on blockchain. Reported by the South China Morning Post. According to the publication, this is the first time a Chinese bank has issued digital securities using distributed ledger technology..

The bonds will be sold in the form of certificates of deposit. Usually the amount of such a certificate is measured in tens of thousands of yuan, and their main buyers are professional investors and other banks. They are often used in interbank financing, especially by small and medium sized banks in China. Tokenization of certificates of deposit on the blockchain allows retail investors to buy small shares of such instruments.

In this case, the certificates will be issued through the China Construction Bank division in Labuan, Malaysia for a period of 3 months. The minimum security amount will be $ 100, profit at the close of 0.75%, which exceeds the average bank rate of 0.25% per year.

It is noteworthy that the certificates will be available for exchange for bitcoin through its own exchange Fusang, licensed in Labuan. Bidding starts on Friday. If the first experience is successful, Fusang hopes to establish cooperation with state-owned banks regarding the issue of securities in other currencies, including the yuan..

Since the certificates are issued under an offshore dollar offer, they will not be covered by China's depositary insurance. China Construction Bank noted that the decision to issue bonds on the blockchain aims to "bring fintech closer to broader financial markets.".

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