China Construction Bank unit raising $3 billion via blockchain bonds, which can be purchased with bitcoin

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.

About Author

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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