World’s Second Biggest Bank to Issue $3B in Bonds Tradable for Bitcoin – CoinDesk
China Construction Bank (CCB) has tapped Hong Kong-based digital asset exchange Fusang for the issuance of $3 billion-worth of debt securities over a blockchain.
Notably, the digital securities will be exchangeable for bitcoin on the Fusang exchange, as well as U.S. dollars. Trading is slated to commence this Friday.
Bonds are tradeable debt securities issued by a government or company to support spending obligations. Chinese bonds usually trade for tens of thousands of yuan (over $4,000) meaning they are mainly accessible to institutional and professional investors.
The bank aims to reduce that barrier to entry by making certificates available for a minimum of $100. They will offer around a 0.75% yield at maturity – higher than the average 0.25% interest achieved per annum at other banks, the report indicated.
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