China’s CCB withdraws $3B blockchain bond to be listed on Malaysian exchange
In a development that has taken many in the community by surprise, a blockchain bond worth $3 billion has been withdrawn from a Malaysian crypto-exchange, according to a recent report. The bond in question was arranged by a China Construction Bank Corp (CCB) unit using blockchain technology.
In fact, it was reportedly withdrawn at the request of the issuer – Longbond Ltd. – a special purpose vehicle that was created solely to issue digital bonds and deposit the proceeds with CCB’s branch in Labuan, a Malaysian offshore financial center.
CCB Labuan was the lead arranger and listing sponsor of the bond which was to be tradable on FUSANG exchange, a platform that trades digital assets such as Bitcoin, as well as Security Token Offerings (STOs).
Interestingly, just over 10 days ago, FUSANG had revealed that the bond had not been listed due to a letter received from CCB Labuan on behalf of Longbond, despite it being due. The letter in question had requested a postponement in the listing.
However, on 20 November, FUSANG was later informed by CCB Labuan that the issuance will not proceed at all.
According to FUSANG CEO Henry Chong, the bank did not give a reason for the suspension. He added,
“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.”
China Construction Bank Corporation is one of the largest banks in the world and one of the “big four” banks in the People’s Republic of China, a country that has banned virtual currency trading since 2017.
What should also be noted here is that following media reports about the bond earlier this month, the bank had come out and said that CCB Labuan was not the issuer of the bond, adding that the branch did not accept Bitcoin in the first place.
In fact, the Chinese banking regulator, in the past, had reportedly fined a branch of the China Construction Bank (CCB) to the tune of over $1 million for rule violations.