TechFlow News — According to the Wall Street Journal, China Construction Bank plans to issue a digital bond to raise up to $3 billion. Both individual and institutional investors will be able to buy and sell the bond using U.S. dollars or bitcoin.
The issuance will be executed by China Construction Bank's Labuan branch in Malaysia. Labuan is a small offshore financial center and a tax haven. The digital bond will be listed on Fusang Exchange, a platform that facilitates cryptocurrency trading and accepts bitcoin as a payment method. For investors wishing to purchase the bond, the exchange will convert received bitcoin into U.S. dollars to complete the transaction.
The minimum investment for overseas investors is $100. The bond will roll over every three months, offering an annualized interest rate of 50 basis points above the London Interbank Offered Rate (Libor), which equates to approximately 0.75% at current levels.
