As per DL News, a state-owned bank in China has issued one of the country’s first-ever commercial bonds on a blockchain. Huaxia Bank distributed the bonds, worth over $637 million, via its subsidiary Huaxia Financial Leasing, exclusively in China’s central bank digital currency (CBDC). The entire issuance process was recorded on the blockchain in real-time, ensuring immutable transactions and allowing investors to check information at any time. The bank claims the move eliminates intermediaries and could pave the way for more blockchain-powered loans in China. The bonds have a coupon rate of 1.84% and will mature in three years. Huaxia did not disclose the specific blockchain network used, but most Chinese companies rely on private blockchains due to the country’s crypto regulations.
Chinese State-Owned Bank Issues $637M Onchain Digital Yuan Bonds
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