TL;DR
- Futian Investment Holding issued the first public RWA-backed digital bond on Ethereum, raising around $70 million.
- The offshore RMB-denominated bond matures in two years with a 2.62% interest rate, becoming the first tokenized security on a public blockchain to be listed on traditional markets.
- This issuance signals a shift from testing to large-scale adoption, connecting on-chain infrastructure with regulated markets.
Futian Investment Holding, a state-owned company from Shenzhen, issued the first publicly offered RWA-backed digital bond on Ethereum. The total placement reached 500 million yuan, about $70 million.
How Does the Bond Work?
These are offshore RMB-denominated bonds with a two-year maturity and a 2.62% coupon. The instrument was listed in the Shenzhen and Macao markets, marking the first time tokenized securities on a public blockchain have gained access to traditional exchanges.
Until now, tokenized bond issuances in Hong Kong had been structured as private placements with limited reach. By turning it into a public offering, Futian allows a broader investor base to take part and creates an opportunity to integrate blockchain infrastructure with regulated markets.
The issuance was supported by Hong Kong-based start-up NVT, which developed the end-to-end solution. Its founder, Jay Zhao, explained that tokenization is moving beyond the testing phase and starting to establish itself as a scalable practice capable of bridging conventional financial markets with on-chain technology.
The decision to use Ethereum as the platform reflects a cautious shift in China’s relationship with blockchain. The country maintains its ban on cryptocurrency trading and mining, citing risks to financial stability and energy consumption. However, it allows certain applications of the technology when tied to traditional financial instruments and state-supervised projects.
Hong Kong Needs to Catch Up, According to CZ
The issuance comes as Hong Kong introduces a new regulatory framework for stablecoins announced by the Monetary Authority. In August, 77 entities expressed interest in applying for licenses, including banks, tech firms, asset managers, payment platforms, and Web3-related companies. The regulator clarified that only a few will receive initial approval and warned against unlicensed stablecoin promotions.
Meanwhile, Binance founder Changpeng Zhao pointed out that the dominance of dollar-backed stablecoins leaves a gap for currencies like the euro and RMB. He warned that the Hong Kong Stock Exchange could lose relevance if it doesn’t embrace asset tokenization, while other Asian markets may need to reassess their strategic positioning. Zhao added that while the market sees huge potential in RWA tokenization, the actual implementation is proving far more complex than many expected
