Chinese Major Bank Sells Bonds Worth $3 Billion for Bitcoin


November 12, 2020 12:42 pm

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China Construction Bank, one of the top 4 banks in China, is selling $3 billion bonds which can be purchased using bitcoin. The bonds will be listed on a regulated Malaysian cryptocurrency exchange. 

According to the South China Morning Post, this is the first digital security issued by a Chinese bank on a blockchain

The publication said:

“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.”

The publication also mentioned that the trading will begin from Friday, describing:

“The security would roll over every three months and pay annualized interest of Libor plus 50 basis points, or approximately 0.75%”

Last year, the Bank of China has issued 20 billion yuan ($2.8 billion) in blockchain-based bonds for small businesses with their own blockchain platforms. The bank announced that it has completed pricing and issuance of the bonds for the first period this week and the two-year bond will come to the market with a 3.25% coupon rate. The announcement mentioned that the bank aims to raise funds to support these businesses.

The statement added:

“We have used our own blockchain-based bond issuance system in the process. This is also the first bond issuance ledger system that is based on blockchain in the country.” 

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