China Construction Bank Helps Complete Tests on New Blockchain Bond in Malaysia
What’s new: State-owned China Construction Bank Corp. (CCB), the world’s second-largest bank by assets, has helped complete the proof-of-concept of a bond issued and managed based on blockchain technology, a project jointly led by Malaysia’s national stock exchange Bursa Malaysia Berhad and Singaporean fintech company Hashstacs Pte. Ltd.
CCB’s branch located in the Malaysian offshore financial hub of Labuan has been involved in testing and simulating bond issuances on the blockchain-based platform developed by Hashstacs, along with two of the largest Malaysian lenders, according to Hashstacs’ Thursday statement.
What’s the background: Initially announced in July, the bond project aimed to show that blockchain technology can deliver efficiencies, transparency and trust that can benefit the bond market, Bursa Malaysia’s CEO Datuk Muhamad Umar Swift said in the statement.
Last month, the planned issuance of a $3 billion bond in Malaysia — touted as the “first publicly listed debt security on a blockchain” — was suspended, with CCB’s Labuan branch acting as the lead arranger and listing sponsor for the deal. No reason was ever released for the delay.
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