China State Company Issues RWA Digital Bond on Ethereum
Shenzhen Futian Funding Holdings (SFIH) issued an RWA-based digital bond on Ethereum, elevating $700 million with Fitch’s A- score in Hong Kong.
On August 29, the digital bond was listed within the Shenzhen and Macau markets. That is the primary time tokenized securities based mostly on a public blockchain have been allowed on conventional exchanges.
First Publicly Listed RWA Digital Bond
Tokenized bonds in Hong Kong have sometimes been distributed through personal placements. This public providing broadens investor entry whereas demonstrating the combination of blockchain know-how inside regulated monetary markets.
The tokens are FTID TOKEN 001 (ticker: FTID001, Chinese language shorthand: 福币), registered and managed immediately on Ethereum. The bond carries a 2.62% coupon, matures in two years, and has acquired an A- score from Fitch Rankings, reassuring buyers about its credit score high quality.
Notably, SFIH, a Shenzhen-based state-owned enterprise, has monitored world capital markets carefully since its first abroad bond issuance in October 2024. In consequence, the corporate seized the chance to capitalize on the rising demand for RWA devices.
As well as, SFIH defined that the issuance helps its broader technique. It helps diversify worldwide funding channels whereas optimizing the agency’s capital construction.
Hong Kong Strengthens Digital Finance Position
The deal was executed in Hong Kong, a metropolis aiming to turn out to be a leading hub for digital finance. GF Securities (Hong Kong) served as lead underwriter. Different contributors included CMB Worldwide, CICC, Minsheng Capital, Orient Securities Worldwide, Hong Kong Rongtong Securities, and Guoyuan Worldwide.
Furthermore, analysts view the transaction as a big growth in China’s monetary innovation. Led by SFIH’s instance of an SOE issuing tokenized debt linked to real-world belongings, extra Chinese firms may soon consider blockchain-based fundraising strategies.
Moreover, tokenization can carry a number of benefits. It could enhance transparency, scale back settlement occasions, and supply simpler market entry for world buyers. These options make tokenized securities a beautiful choice in comparison with conventional debt devices.
In the meantime, different markets, from main banks to asset managers, additionally experiment with tokenization. BlackRock’s tokenized US Treasury fund, BUIDL, is a typical instance. This world momentum means that tokenized bonds might evolve right into a mainstream financing device somewhat than stay area of interest.
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