China Construction Bank, which is one of the top four banks in the country, has carried out the sale of $3 billion worth of bonds using blockchain technology. The purpose of this is to reduce service costs associated with financial intermediaries.
To facilitate the sale of bonds through blockchain, China Construction Bank has partnered with Hong Kong-based fintech firm Fusang. In a joint company statement, both parties said that the digital bonds, which will be listed on Malaysia-based bourse- Fusang Exchange, can be bought for bitcoin or US dollars.
Fusang chief executive Henry Chong said that the fintech also intends to work with the other top Chinese bank on the issuance of certificates in other currencies.
According to a report by blockchain and crypto data platform LongHash, more than 10,000 blockchain-based companies have been established in China during the first seven months of this year.
LongHash said that by the end of the year, the total number of blockchain companies in China could pass 2018’s total of 185,00. The Guangdong Province in Southeast China has the highest number of blockchain startups with Yunnan Province in the southwest coming in second.
Earlier this year, the Chinese government also approved numerous blockchain-related projects, most of which were from Beijing. The approved projects include big names such as Baidu, JD, Alibaba, Suning, China Mobile and China Merchants Bank among others. It is interesting to see an emerging trend in the establishment of several blockchain companies in China despite the coronavirus pandemic