China Construction Bank Corporation, one of the "big four" banks in China, is collaborating with digital securities exchange Fusang to attract up to $3 billion with the help of a publicly listed debt security on a blockchain.
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According to an official press release, retail investors can purchase the so-called "Longbond" tokens with US dollars or bitcoin (EXANTE: Bitcoin), with investments of as little as $100. The assets will reportedly be backed by deposits at CCB's branch on the Malaysian tax haven island of Labuan.
Felix Feng Qi, Principal Officer, CCB Labuan, says that the issuance serves "to narrow the divide between fintech and the wider financial markets."
"CCB Labuan is happy to play its role as lead arranger for the first publicly listed debt security on a blockchain," he added.
In June, Chinese commercial bank, China Zheshang Bank, also issued securities worth $16.9 billion on a blockchain network.
The issuance of securities was implemented as part of the pilot program of the National Association of Financial Market Institutional Investors (NAFMII). The NAFMII representative said that with the help of blockchain, companies have direct access to the markets, which greatly simplifies the attraction of financing.
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