Shenzhen Futian Funding Holdings (SFIH) issued an RWA-based digital bond on Ethereum, elevating $700 million with Fitch’s A- ranking in Hong Kong.
On August 29, the digital bond was listed within the Shenzhen and Macau markets. That is the primary time tokenized securities primarily based on a public blockchain have been allowed on conventional exchanges.
First Publicly Listed RWA Digital Bond
Tokenized bonds in Hong Kong have usually been distributed by way of 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 instantly on Ethereum. The bond carries a 2.62% coupon, matures in two years, and has acquired an A- ranking from Fitch Scores, reassuring traders about its credit score high quality.
Notably, SFIH, a Shenzhen-based state-owned enterprise, has monitored international capital markets intently since its first abroad bond issuance in October 2024. Consequently, 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 grow to be a number one hub for digital finance. GF Securities (Hong Kong) served as lead underwriter. Different members included CMB Worldwide, CICC, Minsheng Capital, Orient Securities Worldwide, Hong Kong Rongtong Securities, and Guoyuan Worldwide.
Furthermore, analysts view the transaction as a big improvement in China’s monetary innovation. Led by SFIH’s instance of an SOE issuing tokenized debt linked to real-world belongings, extra Chinese language corporations could quickly take into account blockchain-based fundraising strategies.
Moreover, tokenization can convey a number of benefits. It might improve transparency, cut back settlement instances, and supply simpler market entry for international traders. These options make tokenized securities a lovely 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 international momentum means that tokenized bonds might evolve right into a mainstream financing instrument somewhat than stay area of interest.
