Hua Xia Bank issues $600 million tokenized bonds

Doohyun Hwang

Summary

Hua Xia Bank said it issued $600 million tokenized bonds on-chain targeting holders of the digital yuan (CBDC).
The bond has a three-year maturity, a fixed rate of 1.84%, and issuance·bidding·settlement were conducted on a blockchain basis aiming for cost reduction and faster settlement.
This case is seen as reflecting the Chinese government's intention to strengthen the digital financial system.

A tokenized government bond targeted at holders of the Chinese government's issued digital yuan (CBDC) was issued in the amount of $600 million.

On the 4th (local time), Cointelegraph reported that Hua Xia Bank issued a total of 4.5 billion yuan (about $600 million) of tokenized bonds on-chain through its affiliate Hua Xia Financial Leasing.

The bond, with a three-year maturity·fixed rate of 1.84%, was open for bidding only to digital yuan holders. With issuance, bidding, and settlement all conducted on a blockchain basis, it aimed to reduce intermediary steps in the clearing process, lowering costs and improving settlement speed.

China has accelerated innovation of public and financial infrastructure using the digital yuan this year. In particular, this issuance is seen as an example that reaffirms the Chinese government's intention to strengthen a state-led digital financial system.