The bond was auctioned off to holders of the digital yuan, a central bank digital currency (CBDC) developed by the Chinese government.
Hua Xia Bank, a publicly traded financial institution linked to China’s government, issued 4.5 billion yuan ($600 million) in tokenized bonds on Wednesday, aiming to reduce clearing friction by removing intermediaries from the auction process.
According to Sina, the onchain government bonds were issued by Hua Xia Financial Leasing, a subsidiary of Hua Xia Bank, a state-controlled commercial bank in China. The bonds offered a three-year fixed yield of 1.84% to holders.
The $600 million bond tranche was auctioned off exclusively to holders of China’s digital renminbi, also known as the digital yuan.
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