China Construction Bank to Raise US$ 3 Billion Blockchain Bond via Its Labuan Branchby Fintech News Malaysia November 12, 2020
China Construction Bank’s Labuan branch (CCB Labuan) has partnered with digital asset exchange firm Fusang to raise a US$ 3 billion bond on the blockchain.
The bond will be issued by Longbond Ltd. a Special Purpose Vehicle (SPV) set up with the sole purpose of issuing digital bonds and depositing the proceeds to with CCB Labuan. The bank will be acting as the lead arranger and listing sponsor for this deal.
This “Longbond” represents the first digital security to be listed on a public stock exchange that is directly accessible by retail investors, according to their media statement. This move is welcome by the Labuan Financial Services Authority, its Director-General, Datuk Daniel Mah Abdullah said that they encourage these efforts to generate a more vibrant market.
With this digital bond, both retail and sophisticated investors globally will have direct access through the Fusang Exchange with investment amounts of as little as USD 100. Investors will also be able to trade directly in/out of the bond using BTC.
Henry Chong, CEO Fusang Exchange said that this partnership is the perfect showcase for how digital securities can “power financial inclusion” by combining “exciting advancements in blockchain technology with tokenisation of traditional securities.