330 total views
China Construction Bank (CCB) has partnered with Fusang exchange (Malaysia) to issue $ 3 billion worth of debt securities on the blockchain platform.
According to the South China Morning Post, tokenized bond certificates have been issued through a state-owned bank headquartered in Labuan (Malaysia), with a maturity of 3 months.
Notably, this digital security can be converted to Bitcoin or USD on the Fusang exchange. Trading will likely take place on this Friday.
According to Fusang CEO Henry Chong, if the plan succeeds, Fusang will work with China’s “Big Four” banks to issue certificates in many other currencies, including the RMB.
With a blockchain issuance, CCB – the world’s second largest international bank by capitalization – is aiming to minimize costs incurred from traditional financial institutions. The bank also said it will provide low-level debt products for retail investors to access.
It is known that the bank will reduce the barrier by helping certificates have a starting price of at least 100 USD. These products provide a return of around 0.75% at maturity, higher than the 0.25% average annual interest rate for other banks.
According to CoinDesk
Maybe you are interested:
Blockchain technology is designed to help you transfer digital assets (such as currencies), without the intervention of an intermediary (such as a bank). Ignoring intermediaries means transactions will be expedited faster and less costly. Read more…
#worlds #largest #bank #capitalization #issues #convertible #bonds #Bitcoin