Top Chinese bank cancels the arrival of Bitcoin-tradable bond

Top Chinese bank cancels the arrival of Bitcoin-tradable bond

The cryptocurrency industry continues to get more and more adopted and involved with traditional forms of money, as well as other investment assets. This is what led to the proposed issuance of a Bitcoin-tradable bond, which was supposed to be issued by a branch of China Construction Bank (CCB) in Labuan, Malaysia. Unfortunately, the bank recently announced that this will not happen, after all.

According to previously reported plans, this top Chinese bank was supposed to list a $3 billion bond issuance, which was supposed to be tradable for Bitcoin (BTC), as well as the USD. However, on November 20th, CCB Labuan decided not to go through with the plan, announcing that the upcoming listing was suspended.

The bank’s Labuan branch noted that the issuance will not proceed, but also that the bond-issuance program is to be completely re-evaluated.

The reasons behind the decision remain unknown

The bank did not provide any reason regarding the decision. It only announced that the entire plan is suspended.

The Longbond debt securities, which were supposed to be issued, were set to be traded on the FUSANG crypto exchange. However, the exchange did not reveal the reason behind the decision, either.

It is worth noting that China Construction Bank belongs to the Big Four — a group of four largest banks in China. Not only that, but it is also the second-largest bank by assets in the entire world.

While it is unknown why the bank decided to back out, many will likely be disappointed to see the deal fall through, as it was supposed to be a very major step for Bitcoin, as well as the crypto industry as a whole.

Another thing to note is that, earlier in November, after media reports about the bond started to emerge, the bank stated that CCB Labuan does not accept Bitcoin, and that it is not the issuer of the bond.

The post Top Chinese bank cancels the arrival of Bitcoin-tradable bond appeared first on Invezz.

Publication date: 
11/23/2020 - 15:29

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