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China Construction Bank Reportedly Withdraws $3 Billion Blockchain Bond

UTC by Bhushan Akolkar · 2 min read
China Construction Bank Reportedly Withdraws $3 Billion Blockchain Bond
Photo: Depositphotos

While there’s no explanation given by CCB, the recent withdrawal of the blockchain bond has left investors upset. The Malaysian crypto exchange Fusang expressed disappointment on CCB’s decision.

The China Construction Bank has reportedly withdrawn a $3 billion blockchain bond listing that was likely to support trades in Bitcoin and USD. Malaysian cryptocurrency exchange Fusang was supposed to list the bond appraised of the withdrawal on the issuer’s request.

As reported by Reuters, the exchange received a letter of cancellation from CCB Labuan last week on November 20. As per the previous plans, the blockchain-based bond was to be issued by Longbong Ltc which is a special purpose platform designed especially for issuing digital bonds and depositing the proceeds with CCB Labuan.

Also, the earlier reports note the bond was to be traded on Malaysia’s digital asset exchange FUSANG. The bond had participation open for both retail and institutional investors. Moreover, the minimum investment requirement was only $100.

In an official statement, FUSAND said that it has accepted this decision and is immediately suspending the listing. It has also ensured the orderly withdrawal of all associated listing processes and procedures. FUSANG noted that it has initiated the return of all investors’ funds. In the official press release, Henry Chong, CEO of the FUSANG Exchange said:

“While we are disappointed that this Listing has been suspended, there were no legal, regulatory, operational, or technical issues with the FUSANG platform or the IPO process and filing. The overwhelming investor interest and demand for this landmark USD 3 billion program has been a fantastic validation of the digital issuance and listing process that we have created, and it is unfortunate that the Listing Sponsor has decided that they are unable to proceed with this Listing.”

CCB’s Twisting Statements on Bitcoin

Earlier this month when the news of the blockchain-bond broke out, investors remained surprised on CCB’s soft stand for Bitcoin. Knowing the fact that China has been cracking down severely on Bitcoin, investors remained skeptical. The world’s second-largest bank has declined to comment anything on the matter.

However, it has added that it doesn’t accept Bitcoin (BTC) and CCB Labuan is not the issuer. FUSANG noted that working with the CCB on the digital bonds issue has helped it in several legal and regulatory requirements. However, the recent pull-back from CCB has upset the investors.

The Malaysian Exchange noted that it’s willing to work in the future with the CCB for bond issuances in currencies other than USD.

Bitcoin News, Blockchain News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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