CCB takes another step forward in blockchain innovation! It is testing the issuance of offshore digital bonds, which can be purchased with US dollars or Bitcoin

China Construction Bank continues to take bold steps in exploring the blockchain field.

On Wednesday, China Construction Bank's Labuan branch in Malaysia partnered with the local exchange Fusang Exchange to issue $3 billion in digital bonds based on blockchain technology. The threshold for investor participation is extremely low, with a starting amount of only $100, and purchases can be made using either U.S. dollars or Bitcoin.

The bond will be rolled over every three months, with an annualized interest rate of Libor (London Interbank Offered Rate) plus 50 basis points, equivalent to about 0.75% at current levels. Regarding this interest rate, CCB and Fusang Exchange said in a joint press release, "This is significantly higher than the market interest rate for general time deposits."

The bond sale, which was launched on Wednesday, is the first debt security to be publicly traded on a blockchain. Investors can only buy it through the Fusang Exchange, with trading on the exchange set to begin on Friday. Proceeds from the sale will be deposited with CCB’s Labuan branch.

The target of issuance is global investors, but residents of the United States and China are excluded. In addition, residents of some regions subject to international sanctions are also unable to participate.

Steven Wong, director of strategy and business development at CCB Malaysia, said that from the perspective of CCB, it is absorbing bank deposits, which is the core business of the bank. CCB believes that this is a pilot and an innovative product, and CCB will not engage in transactions of digital currencies such as Bitcoin.

Fusang Exchange CEO Henry Chong said the bond issuance gives global investors the opportunity to participate in investments that were previously only available to large institutions, narrowing the gap between fintech and financial markets.