A Big Chinese Bank Is Selling Bonds That Can Be Bought With Cash or Bitcoin

China Construction Bank Corp. is planning to raise up to $3 billion from a sale of bonds that individuals and institutions can trade in and out of using U.S. dollars or bitcoin. The Beijing-headquartered bank, one of China’s largest, is selling a digital bond that investors outside the country can buy for as little as $100. The security would roll over every three months and pay annualized interest of Libor plus 50 basis points, or approximately 0.75%. The deal is being arranged by a branch of China Construction Bank located in Labuan, a small offshore financial center in Malaysia that is a tax haven. The digital bond will be listed on the Fusang Exchange, a bourse that also facilitates the trading of cryptocurrencies. The exchange accepts bitcoin as a form of payment, and will convert it into U.S. dollars for investors buying the digital bonds. Investors can only purchase the…

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