China Construction Bank's (CCB's) branch in Labuan, Malaysia, is raising up to $3 billion via blockchain bonds.
The bonds will be publicly traded on Malaysian digital asset exchange FUSANG and can be bought with bitcoin and U.S. dollars, according to a statement shared with The Block on Wednesday. Both retail and institutional investors can buy these bonds. The minimum investment limit is $100 and trading begins Friday.
The bonds will be issued by Longbond Ltd, a special-purpose vehicle set up to issue digital bonds and deposit the funds with CCB Labuan. The bank is the lead arranger and listing sponsor of the bonds, which will offer an annualized rate of Libor + 50 basis points, i.e., around 0.75% at current levels.
Henry Chong, CEO of FUSANG, said that digital securities can power financial inclusion, by combining the benefits of blockchain technology with the tokenization of traditional securities. "We believe that this will be the start of Crypto 2.0. – the true institutionalization digital asset products," said Chong.
Residents of the U.S., China, Iran, North Korea, and some other restricted countries are not allowed to invest in the bonds.