The bonds of the second largest Chinese bank… buyable in bitcoins!
Bitcoin, a safe bet? – Who would have thought to read that a few years ago, when the whole economic and financial system didn’t care about cryptocurrencies? Yet it is indeed true. China Construction Bank will raise funds. And hold on tight! In addition to the US dollar, it will gladly accept Bitcoin Era.
A digital issue of bank bonds
According to an article in the South China Morning Post newspaper, the big bank China Construction Bank will launch a sale of a total of $ 3 billion of bonds on blockchain .
The Chinese banking giant has partnered with Hong Kong-based fintech company Fusang . The latter will allow, on its eponymous crypto-exchange, the distribution of this digital title .
These “blockchain” bonds allow a certain democratization of the investor public who can access them. Listing these digitized bonds via blockchain allows them to be issued at lower costs , reducing intermediaries and their commissions.
Thus, equivalents in traditional form would be sold for several tens of thousands of yuan each (more than 1,500 dollars ), which rather reserves them for professional or wealthy investors. However, here, the bonds of the China Construction Bank can be subscribed from a minimum of 100 dollars each only.
“If this sale is successful with investors, Fusang hopes to work with the public bank on issuance in other currencies, including the yuan. » – Henry Chong, CEO of Fusang
When bitcoins get embedded
The other incredible peculiarity that makes this bond sale unique is that the China Construction Bank will accept both classic US dollars and bitcoins .
The vouchers can be exchanged freely on the Fusang Exchange , authorized by the financial regulator of Labuan, Malaysia .
“We believe this will be the start of cryptos 2.0: the true institutionalization of digital assets. “ – Henry Chong
These digital bonds will be open for trading starting this Friday, November 13 . A first tranche of 58 million dollars of bonds will be issued, intended for both individual and institutional investors .
Given that this is traditional finance (not DeFi), you should not, on the other hand, not expect an exceptional interest rate . It will only be 0.75% , which is still three times the current standard interbank rate ( Libor ) for this kind of bond (which is only 0.25%).