Digital asset exchange, Fusang announced that China Construction Bank (CCB) has requested to cancel the $3 billion digital bond listing that was supposed to support trades in USD and Bitcoin. The exchange received a letter from CCB Labuan to cancel the issuance on 20 November.
The world’s second-largest bank collaborated with Fusang earlier this month to announce the launch of $3 billion worth of debt securities to be issued using blockchain technology. A special purpose vehicle, Longbond Ltd was created by CCB’s Labuan branch to issue digital bonds.
According to the recent reports, Fusang received a letter from CCB Labuan on behalf of Longbond on the original date of issuance (13 November) to postpone the listing for a certain time period, but on 20 November CCB Labuan confirmed the cancellation.
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Commenting on the matter, Henry Chong, CEO of Fusang, said: “The bank did not give a reason for the suspension, we are disappointed that this Listing has been suspended, there were no legal, regulatory, operational, or technical issues with the FUSANG platform or the IPO process or filing.”
Stance of CCB
Regarding the latest development, CCB declined to provide any comment on the matter. In recent weeks, following the media reports about the digital bond issuance and a possible soft stance by the world’s second-largest bank towards bitcoin and cryptocurrencies, CCB said that the bank did not accept bitcoin and CCB Labuan was not the issuer. Fusang mentioned that the bank approached the exchange to work on the idea of digital bonds and helped in many legal and regulatory requirements, but the recent cancellation proved to be a setback for the investors. Despite the recent suspension, Fusang aims to collaborate with CCB in the future for possible options related to bond issuance in currencies other than the USD.
Finance Magnates earlier reported about the digital bond offering and the excitement of CCB Labuan for the listing.