China Construction Bank (CCB) would be selling bonds worth $3 billion that can be paid for in Bitcoin. According to a by South China Morning Post (SCMP), CCB has partnered with Hong Kong fintech company, Fusang Exchange, to issue the debt securities over a blockchain.
The report, published on the 11th of November, noted that this is the first time a Chinese bank would be issuing bonds over a blockchain. The digital securities would also be tradable for US dollars.
The trading of the bond, which would be sold in the form of certificates of deposit, would commence on the 13th of November. Usually, mostly professional and institutional investors have access to certificates of deposits. Chinese banks also use certificates of deposits for interbank funding. However, the SCMP report revealed that the bond would be sold in smaller amounts to make them attainable for retail investors.
Furthermore, CCB would issue the certificates of deposit through its Labuan branch over three months. Also, certificates would be issued at a minimum of $100 each and expected to yield about 0.75% after its three-month tenure. The yield percentage is more than the 0.25% annual interest rate banks offer.
The partnership CCB has with Fusang will allow CCB investors to trade their digital certificates on the fintech company exchange platform.