China Construction Bank partnered with Fintech company Fusang to start selling $ 3 billion worth of Bitcoin (BTC) and digital deposit certificates on the blockchain. It was learned that the first transactions will be made using Bitcoin on the Fusang stock exchange located in Labuan, Malaysia. With this move by the bank, investors will be able to purchase low-cost financial instruments such as stocks and bonds via blockchain.
China Construction Bank partnered with the Hong Kong-based company Fusang, allowing investors to invest in Bitcoin (BTC) and debt instruments such as stocks and bonds on the blockchain network. In the news shared by the South China Morning Post, it was announced that investors can now convert their deposit certificates into tokens on the blockchain network and obtain digital certificates in small amounts.
According to the agreement between the Construction Bank of China and the Fusang exchange, investors will be able to buy and sell digital certificates in Bitcoin or US dollars. Fusang CEO Henry Chong is said to have hoped to work with the Construction Bank of China to exchange other currencies, including the yuan, if investors are interested.
Blockchain lowers transaction cost
Georgina Lee, who made the report, stated that the blockchain network enabled financial instruments such as stocks and bonds to be purchased at a much lower price. Digital certificates to be provided by China Construction Bank will be given to investors in 3-month terms through the stock exchange in Labuan. In the news, it was stated that the minimum value of the certificates would be $ 100, while it was also said that the rate of return would be 0.75 in a 3-month term.
While it was reported that the bonds will be sold in the form of deposit certificates, it was stated that this financial tool is mainly used by banks in China. The transactions in question will begin on November 13, 2020.