China Construction Bank Selling $3 Billion of Bonds for Bitcoin

China Construction Bank, one of the major banks in China, is selling bonds of $3 billion for bitcoin. The bonds will be listed on a standardized Malaysian crypto exchange.

China Construction Bank (CCB) is selling $3 billion in bonds

According to the report, a special design medium has been configured to issue the “Longbond”. Local investors will be equipped to purchase digital tokens on the Fusang exchange utilizing fiat like USD or bitcoin, with stakes of as little as $100.

The report further elaborated that the bond will be traded in the form of receipts of deposit, which are normally traded at yuan and draw largely skilled investors or other banks. They are usually utilized for interbankfunding, particularly for small to medium-sized banks in China. Due to this move, retail investors can now purchase the digital certificates in less amounts.

China Construction Bank’s certificates of deposit will be distributed by its Labuan branch in three months. Distributed at a minimum of US$100 each, the certificates will generate about 0.75% at maturity, more high-priced than the approximately 0.25% interest rate per annum. The publication added, noting:

The deal also allows investors to trade these China Construction Bank’s digital certificates using bitcoin on Fusang Exchange, a digital exchange licensed by the financial regulator in Labuan, Malaysia.

As a first portion of the US$3 billion, China Construction Bank will offer US$58 million of digital certificates ready for common subscription. Beijing-based China Construction Bank Corp, listed in Hong Kong and Shanghai, will be the principal arranger.

Felix Feng Qi, principal officer, CCB Labuan, says:

CCB Labuan is happy to play its role as lead arranger for the first publicly listed debt security on a blockchain. The issuance serves to narrow the divide between fintech and the wider financial markets.

China© Cryptoticker
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