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China Construction Bank’s CBB Bonds Now Selling $3B in BTC

China Construction Bank’s CBB Bonds Now Selling $3B in BTC
  • China Construction Bank (CBB) is selling bonds worth $3 billion for Bitcoin (BTC) and US dollars.
  • Trading of the CBB bonds begins this Friday, 13 Nov 2020.
  • Smaller amounts of bonds are offered which makes them accessible to retail investors.

China Construction Bank is selling CBB bonds worth $3 billion on a blockchain for Bitcoin (BTC) and US dollars. These digital certificates of deposit issues through CCB’s offshore branch in Labuan, Malaysia.

Notably, the trading of the bond begins this Friday, 13 Nov 2020. Hence, bonds are tradable on Fusang digital asset exchange. Additionally, Fusang supports cryptocurrency trading. Therefore, traders are able to exchange Bitcoin for U.S. dollars in order to purchase the bonds.

CCB is offering bonds at lower amounts, making them accessible to retail investors. Remarkably, this is the first time a Chinese bank is issuing bonds over a blockchain.

Notably, Henry Chong, CEO of Fusang, said that digital securities can power financial inclusion. Moreover, CCB is combining the benefits of blockchain technology with the tokenization of traditional securities.

As per the report, certificates will be available at a minimum of $100 each.  They will yield about 0.75% at maturity, higher than the roughly 0.25% interest achieved per annum at other banks.

“If successful, Fusang intends to work with the “Big Four” Chinese bank on the issuance of certificates in other currencies, including the yuan.,” added Chong.

Investors all over the world can purchase securities. However, residents residing in the US, China, Iran, and North Korea are exempted from purchasing bonds.

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