China’s Futian Investment issues $70m tokenized bond on Ethereum in first public RWA offering

Source Cryptopolitan

Chinese state-owned enterprise, Futian Investment Holding, has announced the issuance of the first RWA public offering of a digital bond on the Ethereum public chain in the global market. The offering is valued at 500 million yuan ($70 million).

According to reports, the offshore RMB bonds issued have a two-year expiry date and an interest rate of 2.62%. 

“This move not only helps the company further broaden its global financing channels and optimize its capital structure, but also fully leverages Hong Kong’s policy dividends, injecting solid state-owned enterprise momentum into the high-quality development of Futian District,” the company wrote.

China opens up to a public blockchain

The deal made on the Ethereum blockchain has been listed on both the Shenzhen and Macau markets. This is the first time that tokenized securities based on a public blockchain have been allowed on traditional exchanges.

Most times, tokenized bonds in Hong Kong have been sold through private placements. By making it a public offering, the issue makes it possible for more investors to get involved. It also shows how to add blockchain technology to regulated capital markets.

NVT, a Hong Kong start-up, provided the end-to-end technology for the issuance. “Tokenization is gradually moving beyond the exploratory stage and entering a phase of larger scale and deeper practice,” said Jay Zhao, founder and CEO of NVT. “The significance of this public bond issuance lies not only in enabling broader investor participation, but also in truly bridging traditional capital markets with on-chain infrastructure.”

China is still playing safe 

The RWA bond is a traditional financial instrument now available on the blockchain. To that end, this initiative does not constitute China’s broader embrace of digital assets.

China banned all crypto transactions and mining. The main reason for the ban was its effects on energy demand and concerns that crypto might destabilize the financial system.

However, the country continues to allow specific use cases for crypto and blockchain technology. Most recently, China, like many other countries, has grown concerned about the growing popularity of stablecoins. 

The issue of tokenized bonds comes after the Hong Kong Monetary Authority (HKMA) introduced a new digital finance age with its stablecoin regulation last month. The city now finds a balance between innovation and oversight after a time of speculation.

According to HKMA, 77 organizations had shown interest in applying for stablecoin licenses as of August 31. These organizations included banks, tech companies, financial firms, asset managers, e-commerce companies, payment providers, start-ups, and Web3 businesses.

The HKMA also made it clear that showing interest does not mean approval and that only a few licenses will be given out at first. It also advised people to be on the lookout for unlicensed stablecoin promotions. 

RMB is absent in the present blockchain, Binance’s CZ

Dollar-denominated stablecoins currently dominate the market and could have negative effects on other currencies.

At the Hong Kong CryptoFi Forum, Changpeng Zhao (CZ), founder of Binance, said, “In today’s blockchain ecosystem, almost everything is USD-denominated; the euro and RMB are essentially absent. As the world’s largest equity market, the US could use blockchain to attract global investors to US stocks, which would be hugely beneficial.”

According to him, the Hong Kong Stock Exchange, which is important worldwide, could lose power if it doesn’t get involved in this wave. The Shanghai Stock Exchange and other Asian stock exchanges must make strategic decisions.

However, he said, “Although RWA tokenization has vast market potential, implementation is far harder than the market expects.”

Sign up to Bybit and start trading with $30,050 in welcome gifts

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold rebounds above $4,350 as US Dollar, Treasury yields slipGold price (XAU/USD) rebounds from a nearly one-month low to around $4,385 during the early Asian session on Thursday. The precious metal edges higher as the ‌US Dollar (USD) and Treasury yields retreat from recent highs.
Author  FXStreet
Sep 03, Thu
Gold price (XAU/USD) rebounds from a nearly one-month low to around $4,385 during the early Asian session on Thursday. The precious metal edges higher as the ‌US Dollar (USD) and Treasury yields retreat from recent highs.
placeholder
Gold rebounds past $4,400 as rate-hike odds cool ahead of NFPGold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
Author  Irene Q.
Sep 03, Thu
Gold is back above $4,400 after weak ADP data cut September rate-hike odds to ~58%. XAU/USD rebounded from Wednesday's $4,282 low; Friday's NFP is the next catalyst.
placeholder
Gold rebounds above $4,450 as Waller tempers Fed rate hike bets ahead US jobs dataGold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday. 
Author  FXStreet
Sep 04, Fri
Gold price (XAU/USD) gains momentum to around $4,470 during the early Asian session on Friday. The precious metal extended its recovery as Federal Reserve (Fed) rate hike bets ease. All eyes will be on the US August Nonfarm Payrolls (NFP) report, which is due later on Friday. 
placeholder
Yen hits one-month high on BOJ September-hike bets; AUD/JPY cracks support as carry unwindsUSD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
Author  Suzie
Sep 04, Fri
USD/JPY has tumbled from the 160 area to a one-month low near 155.2 in two sessions as Bank of Japan hike bets for the Sept 17-18 meeting intensify. AUD/JPY has broken below 112.7, flagging carry-trade stress. A test of 155.21 - and then 153 - is now in focus.
placeholder
Hot August jobs report reignites Fed-hike bets; S&P 500 slips below 7,700 — what to watch before the September FOMCAugust nonfarm payrolls surged to 162,000, three times the consensus, pushing CME FedWatch odds of a September 25-bp hike to 58.4% and dragging the S&P 500 below 7,700. CPI, PPI and the Sept 15-16 FOMC decision now set the tone for US stocks.
Author  Irene Q.
18 hours ago
August nonfarm payrolls surged to 162,000, three times the consensus, pushing CME FedWatch odds of a September 25-bp hike to 58.4% and dragging the S&P 500 below 7,700. CPI, PPI and the Sept 15-16 FOMC decision now set the tone for US stocks.
goTop
quote