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CCB-backed Blockchain-powered Bond Issuance Saga Takes a New Turn
There appears to have been another twist in the tale of the China Construction Bank (CCB)’s Malaysian branch and its aborted launch of blockchain-powered bonds that were set to be tradeable for bitcoin (BTC) via a Hong Kong-based exchange.
Just weeks after CCB pulled the plug on the issuance at the eleventh hour – seemingly in a move to distance itself from crypto, which is all but illegal in China – the bank’s Malaysian operation appears to be gearing up to back a new, similar launch.
Per Chinese media outlet Caixin, CCB Malaysia is now working on a digital bond issuance with the Bursa Malaysia exchange and Singapore-based fintech firm Hashstacs (STACS). The latter claims to be an expert in “digitalizing assets, processes and documents using next-generation blockchain-based technology.”
Earlier this month, STACS struck a deal with Switzerland’s EFG Bank that will see the parties co-develop a blockchain-powered platform that promises to improve the processes involved with structured products.
Bursa Malaysia, meanwhile, has specialized in eco-friendly, environmental, social and corporate governance-compliant bonds, as well as Islamic law-compliant fixed-income financial offerings.
Although the bond issuance is still yet to be finalized, the exchange has reportedly completed a proof of concept in Labuan, Malaysia, ahead of a possible launch.
The offshore region of Labuan is subject to a whole different set of tax regulations from the rest of Malaysia, and CCB Labuan had been on the verge of a ground-breaking bond launch in conjunction with a firm named Longbond and Hong Kong’s Fusang Exchange – before issuing a firm denial of any connection with bitcoin or crypto-related business last month, and eventually scuppering the launch once and for all on November 23.
Cryptonews.com has reached out to CCB for comment on this story.
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A quick 3min read about today's crypto news!
