China Construction Bank (CCB) is working with digital securities exchange Fusang to raise up to $3 billion through a publicly listed debt security on a blockchain.
A special purpose vehicle has been set up for the purpose of issuing the "Longbond". Retail investors will be able to buy digital tokens on the Fusang exchange using dollars or bitcoin, with investments of as little as $100.
The tokens will be backed by deposits at CCB's branch on the Malaysian tax haven island of Labuan. Fusang will use blockchain technology to record ownership.
The partners say that the bond gives retail investors access to an investment previously unavailable to them, while also bringing legitimacy and investor confidence to the world of cryptocurrency and decentralised finance.
Felix Feng Qi, principal officer, CCB Labuan, says: "CCB Labuan is happy to play its role as lead arranger for the first publicly listed debt security on a blockchain. The issuance serves to narrow the divide between fintech and the wider financial markets."
Henry Chong, CEO, Fusang, adds: "We think this is the perfect showcase for how digital securities can power financial inclusion, by combining the exciting advancements in blockchain technology with the tokenisation of traditional securities. We believe that this will be the start of Crypto 2.0. - the true institutionalisation of digital asset products."