TL;DR
- Futian Funding Holding issued the first public RWA-backed digital bond on Ethereum, elevating round $70 million.
- The offshore RMB-denominated bond matures in two years with a 2.62% rate of interest, turning into the first tokenized safety on a public blockchain to be listed on conventional markets.
- This issuance alerts a shift from testing to large-scale adoption, connecting on-chain infrastructure with regulated markets.
Futian Funding Holding, a state-owned firm from Shenzhen, issued the first publicly provided RWA-backed digital bond on Ethereum. The full placement reached 500 million yuan, about $70 million.
How Does the Bond Work?
These are offshore RMB-denominated bonds with a two-year maturity and a 2.62% coupon. The instrument was listed in the Shenzhen and Macao markets, marking the first time tokenized securities on a public blockchain have gained entry to conventional exchanges.
Till now, tokenized bond issuances in Hong Kong had been structured as non-public placements with restricted attain. By turning it right into a public providing, Futian permits a broader investor base to participate and creates a possibility to combine blockchain infrastructure with regulated markets.
The issuance was supported by Hong Kong-based start-up NVT, which developed the end-to-end resolution. Its founder, Jay Zhao, defined that tokenization is transferring past the testing part and beginning to set up itself as a scalable follow able to bridging standard monetary markets with on-chain know-how.
The choice to make use of Ethereum as the platform displays a cautious shift in China’s relationship with blockchain. The nation maintains its ban on cryptocurrency buying and selling and mining, citing dangers to monetary stability and power consumption. Nevertheless, it permits sure functions of the know-how when tied to conventional monetary devices and state-supervised initiatives.
Hong Kong Must Catch Up, In line with CZ
The issuance comes as Hong Kong introduces a brand new regulatory framework for stablecoins introduced by the Financial Authority. In August, 77 entities expressed curiosity in making use of for licenses, together with banks, tech corporations, asset managers, fee platforms, and Web3-related firms. The regulator clarified that just a few will obtain preliminary approval and warned in opposition to unlicensed stablecoin promotions.
In the meantime, Binance founder Changpeng Zhao identified that the dominance of dollar-backed stablecoins leaves a niche for currencies like the euro and RMB. He warned that the Hong Kong Inventory Trade might lose relevance if it doesn’t embrace asset tokenization, whereas different Asian markets could have to reassess their strategic positioning. Zhao added that whereas the market sees enormous potential in RWA tokenization, the precise implementation is proving much more advanced than many anticipated
