China is increasingly embracing certain use cases for digital assets and blockchain technology.
Summary
- Chinese state-owned firm Futian Investment Holding issued its first RWA bonds
- Ethereum-based bonds will enable investors to buy the company’s debt
- China has a complicated relationship with digital assets
Real-world assets are making a significant impact in China. Recently, on September 1, Chinese state-owned enterprise Futian Investment Holding made headlines by announcing the issuance of the first RWA public offering of a digital bond.
The deal, finalized on August 29, involved Futian Investment Holding issuing offshore bonds in Hong Kong worth 500 million yuan. These bonds, which were issued on the Ethereum (ETH) blockchain, come with a two-year maturity and a 2.62% interest rate.
You might also like: Institutional RWA tokenization in 2025: Building the new backbone of finance
The company stated that this move was driven by the increasing adoption of tokenization and RWA technology, showcasing their commitment to embracing new technologies proactively.
“This move not only helps the company further broaden its global financing channels and optimize its capital structure, but also fully leverages Hong Kong’s policy dividends, injecting solid state-owned enterprise momentum into the high-quality development of Futian District,” the company explained.
It is worth noting that the RWA bond represents a traditional financial instrument now accessible on the blockchain, rather than a broader endorsement of digital assets in China.
You might also like: Did China ban crypto (again)? Here’s why the myth won’t die
China’s complex relationship with crypto
China’s stance on crypto is intricate. In 2021, the country imposed a blanket ban on all crypto transactions and mining due to concerns about energy consumption and potential financial system disruptions.
Despite the ban, China continues to allow specific applications for digital assets and blockchain technology. Recently, like many other nations, China has expressed unease about the rise of stablecoins, particularly dollar-pegged stablecoins dominating the market, which could impact other currencies negatively.
Read more: China, Japan, and other countries to challenge USD-pegged stablecoins crusade
