Chinese Lender Taps Fusang to Issue Bonds Worth $3B on Blockchain

China Construction Bank (CCB) has partnered with digital asset exchange, Fusang to issue $3 billion worth of debt securities on a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term. Announced on Wednesday, this is the first digital securities offering on a blockchain by any Chinese bank.

The bond is called Longbond SR Notes and will be directly available to the retail investors.

Usually, Chinese bonds are only accessible to institutional and professional investors with a minimum investment amount of tens of thousands of yuan. However, the Longbond’s can be bought for merely a minimum of $100.

These bonds will offer a 0.75 percent yield at maturity, much higher than the average rate of 0.25 percent on the bonds of other Chinese banks.

“Issuers no longer need to operate in a fragmented environment with multiple process flows as FUSANG’s end-to-end platform streamlines their needs, from issuance to listing, in one place,” Fusang CEO, Henry Chong said.

“Global investors can now benefit from access to an investment previously reserved for only the largest institutions, together with low and transparent fees.”

Regulated in Malaysia

According to the official press release, the bond will be issued by the Labuan-regulated Malaysian branch of the Chinese lender and can be traded on the digital asset exchange from Friday against the US dollar and Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term.

Fusang is also licensed by Labuan as a securities exchange.

“CCB Labuan is happy to play its role as lead arranger for the first publicly listed debt security on a blockchain,” CCB Labuan’s principal officer, Felix Feng Qi stated. “CCB Labuan will continue to work on expanding the technological boundaries to provide value-added products and services to our customers, clients, and associates.”

If the Longbonds manage to gather public interest in such investment instruments, Fusang has plans to further extend its partnership with the Chinese lender on issuance in other currencies, including yuan.