Posted 2 years ago | by @devadmin

China Construction Bank (CCB) has selected Hong Kong-based fintech company Fusang digital asset exchange for the issuance of a $3 billion worth of debt securities over a blockchain exchangeable for Bitcoin.

According to a report by the South China Morning Post, tokenized bond certificates will be issued through the state-owned bank’s Labuan, Malaysia, branch over a period of three months.  The $3 billion programs through the China Construction Bank will make $58 million worth of digital certificates available for public subscription on the Fusang digital exchange, according to the news agency.

The digital securities will also be exchangeable for Bitcoin on the Fusang exchange, as well as U.S. dollars.

Blockchain makes issuing conventional financial instruments, such as equities and bonds, possible at a much lower cost. However, not many banks have begun to do this process. That may soon change in the future with China Construction Bank being the second largest bank in the world to tokenize bonds for traders.

Further, bonds are usually sold at several tens of thousand yuan each and attract mainly professional investors or other banks according to SCMP. Although by tokenizing certificates of deposit on the blockchain, retail investors can now buy digital certificates in smaller amounts. So this isn’t just bullish for Bitcoin it’s also positive news for the bond market and retail investors.

This is all meant to “narrow the divide between fintech and the wider financial markets” according to Felix Feng Qi in a press release statement to SCMP.

Trading is expected to begin as early as this Friday.

Bitcoin is currently trading at [FIAT: $15,842.19] DOWN -2.5% in the last 24 hours according to Coingecko at the time of this report.