As per Wednesday’s report of South China Morning Post, the second-largest bank in the world today – China Construction Bank (CCB) – is set to launch Bitcoin (BTC) tradable bonds amounting to over $3 billion. Notably, this development is made possible through the bank’s partnership with the Malaysian digital asset exchange, Fusang, which will serve as the official issuer of said BTC-purchasable digital bonds. Trading is scheduled to begin this coming Friday, November 13.
This particular offering is headed by the Malaysia-based subsidiary of the CCB currently located on Labuan. According to the bank branch’s principal officer, Felix Feng Qi, this will be the first blockchain-based public debt security. At the same time, Fusang CEO Henry Chong notes that these bonds will mirror bank deposits – only with higher yields.
The CCB clarifies that this latest development aims to lessen the conventional costs surrounding financial intermediaries or third-parties. Not only that, but it will also notably offer the debt instruments at much lower prices in order to render them more accessible and attractive to retail investors. The bank targets to cut down the entry barrier by enabling certificates to go as low as $100. Lastly, it aims to offer about 0.75% yield at maturity, which is actually three-fold of the average 0.25% annual interest on other banks.