China’s second largest bank, the China Construction Bank (CCB), has put $3 billion worth of a debt security for sale on the blockchain, according to a report from the South China Morning Post published on Nov. 11.
- The CCB partnered with Hong Kong-based fintech company Fusang to put $3 billion in a bondon the blockchain, making it the first Chinese bank to do so
- The bank has put $58 million as the first tranche of the full $3 billion which will be made available to the public
- The digital security will now be within the reach of retail investors, who can purchase digital certificates of the bond in small amounts, which are usually purchased by professional investors and/or banks
- The certificates will be available for purchase in units of $100 with a 0.75% yield at maturity
- The purpose of the digital security is to both lower the investment barrier and reduce costs associated with financial intermediaries
- China has been making a strong push for the implementation of blockchain technology, with its CBDC already seeing over $300 million spent