China Construction Bank Withdraws Proposed $3bn Blockchain Bond
China Construction Bank (CCB), one of the largest banks in the world has announced that it has withdrawn plans to sell $3 billion worth of debt on blockchain technology.
On November 23, China Construction Bank’s branch in Labuan, a Malaysian offshore financial center informed Fusang Exchange, a Malaysian cryptocurrency exchange on November 20 that the bond issuance would not proceed.
Despite the withdrawal of the blockchain-based bond issued by CCB, this could have been a landmark attempt in the swap between traditional financial assets and digital assets.
Blockchain bonds are on the way
Seen from the recent issuance of blockchain bonds, blockchain bonds itself can mainly improve the issuance efficiency, reduce the issuance costs, and provide convenience for audit and management. At the same time, due to the enhanced penetrability and traceability, it can accommodate more ordinary investors and lower the investment threshold.
Many banks, including Bank of China, have tried to issue blockchain bonds. In December 2019, Bank of China launched the first domestic bond issuance system based on blockchain technology. Different from the blockchain bonds issued in the past, the blockchain bonds issued by China Construction Bank Labuan branch are mainly based on Ethereum, and the token standard is Ethereum ERC-20, so it is the world’s first the issuance and public trading of the blockchain bonds.
“We regret that this listing has been suspended, however, there are no legal, regulatory, operational or technical issues in the IPO process and filing of FUSANG exchange.”
Said Henry Chong, chief executive officer of FUSANG exchange. Insiders believe that although it failed in the end, it is still a positive signal for traditional financial institutions to enter the blockchain industry.
If more and more traditional financial institutions can join, on the one hand, it will urge the government to carry out regulatory compliance, improve relevant laws and regulations, and establish the behavioral boundaries of on-the-chain finance. On the other hand, it also shows that blockchain technology and crypto assets are beginning to become a real part of the global capital.