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China Construction Bank Selling Digital Bonds for Bitcoin

China Construction Bank Selling Digital Bonds for Bitcoin

One of the largest banking institutions in China, the China Construction Bank recently added new digital bonds on sale for Bitcoin. This is the first publicly listed debt security issues on a blockchain which can be bought for digital assets.

The annual yield of 0.75%

The Wall Street Journal reported that the China Construction Bank has launched the “first publicly listed debt security on a blockchain.” The digital bonds can be bought for both US Dollar and Bitcoin. They will carry an interest rate of 0.75% which will be rolled over every quarter. This process ensures that current securities get closed and fresh loans are added in place of the old ones.

China Construction Bank Selling Digital Bonds for Bitcoin

The offering comes from the offshore branch of the bank located in Labuan, the Malaysian financial center. It will be listed on Fusang Exchange which allows the trading of fiat as well as for cryptocurrencies. The principal officer of the bank’s Malaysian branch, Felix Feng Qi, said that it is the first time debt security is listed on a blockchain that can be bought using crypto.

Bigger yields than bank deposits

The CEO of Fusang Exchange, Henry Chong, said that bonds are similar to bank deposits but they offer bigger yields when compared to deposits in the US dollar. China Construction Bank Malaysian branch’s chief operating and financial strategist, Steven Wong commented,

“From our perspective, we are taking bank deposits, which is our core business. The bank is not dealing in Bitcoin or cryptocurrencies.”

The digital bonds will be available to investors from around the globe except for the residents of North Korea and Iran. Tax residents of these nations based in the US and China will also be prohibited from buying these bonds. The bank aims to sell bonds worth $3 billion with this offering.

Though the bonds were launched today, trading will begin on Fusang Exchange on November 13. The Bank of Thailand had already launched a blockchain-based government savings bond in October. They sold $1.6 billion worth of these financial instruments.

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      Sherlock Gomes loves to write and express his views on anything related to Crypto. He has been covering Crypto for more than two years now. He likes Bitcoin and Cardano. He also writes on Finance, Healthcare, and Technology among other stuff. He can be reached by e-mail on sherlockg@insidebitcoins.com

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