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China State Company Issues RWA Digital Bond on Ethereum

2 mins
Updated by Oihyun Kim
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In Brief

  • Shenzhen Futian Investment issued Ethereum-based RWA digital bonds, raising $700 million with a 2.62% coupon.
  • Hong Kong hosted the deal, with Fitch assigning an A- credit rating to the issuance.
  • The landmark transaction could encourage more Chinese SOEs to adopt blockchain-based fundraising.
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Shenzhen Futian Investment Holdings (SFIH) issued an RWA-based digital bond on Ethereum, raising $700 million with Fitch’s A- rating in Hong Kong.

On August 29, the digital bond was listed in the Shenzhen and Macau markets. This is the first time tokenized securities based on a public blockchain have been allowed on traditional exchanges.

First Publicly Listed RWA Digital Bond

Tokenized bonds in Hong Kong have typically been distributed via private placements. This public offering broadens investor access while demonstrating the integration of blockchain technology within regulated financial markets.

The tokens are FTID TOKEN 001 (ticker: FTID001, Chinese shorthand: 福币), registered and managed directly on Ethereum. The bond carries a 2.62% coupon, matures in two years, and has received an A- rating from Fitch Ratings, reassuring investors about its credit quality.

Notably, SFIH, a Shenzhen-based state-owned enterprise, has monitored global capital markets closely since its first overseas bond issuance in October 2024. As a result, the company seized the opportunity to capitalize on the rising demand for RWA instruments.

In addition, SFIH explained that the issuance supports its broader strategy. It helps diversify international funding channels while optimizing the firm’s capital structure.

Hong Kong Strengthens Digital Finance Role

The deal was executed in Hong Kong, a city aiming to become a leading hub for digital finance. GF Securities (Hong Kong) served as lead underwriter. Other participants included CMB International, CICC, Minsheng Capital, Orient Securities International, Hong Kong Rongtong Securities, and Guoyuan International.

Moreover, analysts view the transaction as a significant development in China’s financial innovation. Led by SFIH’s example of an SOE issuing tokenized debt linked to real-world assets, more Chinese firms may soon consider blockchain-based fundraising methods.

Furthermore, tokenization can bring several advantages. It may increase transparency, reduce settlement times, and provide easier market access for global investors. These features make tokenized securities an attractive option compared to traditional debt instruments.

Meanwhile, other markets, from major banks to asset managers, also experiment with tokenizationBlackRock’s tokenized US Treasury fund, BUIDL, is a typical example. This global momentum suggests that tokenized bonds could evolve into a mainstream financing tool rather than remain niche.

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Shigeki Mori
Born in Osaka, Japan. Worked as a magazine editor, public relations reporter for Yomiuri TV, and editor/reporter for Japanese media in Australia before becoming a freelancer. Has been active as a journalist, editor, translator, and web producer in Japan and Australia for over 20 years. Recently engaged in writing and translating articles related to cryptocurrency, as well as content management.
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