China continues to innovate in the realm of blockchain technology, notably steering clear of direct cryptocurrency ventures.
A government-linked entity in Shenzhen has unveiled a groundbreaking digital bond initiative utilizing the Ethereum blockchain, exemplifying the nation’s selective integration of advanced tech while maintaining its strict stance on cryptocurrency trading.
Innovation in Blockchain Finance
Reports confirm that Futian Investment Holding successfully launched an offshore bond issuance valued at 500 million yuan on August 29.
With an approximate worth of $70 million, these bonds debuted in Hong Kong, hosted on the Ethereum blockchain, carrying a competitive annual interest rate of 2.62% and maturing in two years.
This initiative aims to diversify funding avenues while responding to the increasing trends towards real-world asset (RWA) tokenization and market innovation.
Additionally, the organization credited the supportive regulatory framework of Hong Kong as instrumental to this initiative, aligning with the region’s efforts to foster digital innovation.
Futian Investment Holding Announces Issuance of the World’s First Public RWA Digital Bond on a Public Blockchain pic.twitter.com/E2sGIJZdwl
— UZX Official (@UZX_Official) September 2, 2025
Ongoing Restrictions on Cryptocurrency
Despite this advancement, China’s ban on cryptocurrencies remains firmly in place. In 2021, the Chinese government enforced a comprehensive ban on all crypto mining and transactions.
This maneuver was justified as necessary to control energy consumption and protect the financial stability of the nation.
The prohibition continues unabated, preventing individuals and companies in mainland China from engaging in cryptocurrency activities.
However, some experimental applications, such as tokenized bonds that comply with conventional financial models, are permitted, showcasing a cautious yet progressive approach.
Hong Kong as a Strategic Laboratory
By channeling this bond issuance through Hong Kong, China can maintain its national restrictions while simultaneously seeking a foothold in blockchain finance.
The dynamic city has been designated as a testing ground for digital asset innovations, further solidifying its role in this transformative sector.
China’s meticulous strategy highlights a distinct bifurcation: traditional finance is welcomed when leveraging blockchain technology, but the crypto market remains tightly restricted.
Particularly, stablecoins, especially dollar-pegged ones, have come under scrutiny due to concerns of potential impacts on global currency systems.
Speculations are circulating that this RWA bond might signal the beginning of a series of innovative financial products supported by the state and built on the Ethereum foundation in Hong Kong.
Ultimately, this bond issuance indicates China’s cautious exploration of blockchain technology without reopening avenues for broader cryptocurrency adoption.
Image sourced from Agoda, chart via TradingView
