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China Construction Bank Reportedly Withdraws $3 Billion Blockchain Bond

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While there’s no explanation given by CCB, the recent withdrawal of the blockchain bond has left investors upset. The Malaysian crypto exchange Fusang expressed disappointment on CCB’s decision.

The China Construction Bank has reportedly withdrawn a $3 billion blockchain bond listing that was likely to support trades in Bitcoin and USD. Malaysian cryptocurrency exchange Fusang was supposed to list the bond appraised of the withdrawal on the issuer’s request.

As reported by Reuters, the exchange received a letter of cancellation from CCB Labuan last week on November 20. As per the previous plans, the blockchain-based bond was to be issued by Longbong Ltc which is a special purpose platform designed especially for issuing digital bonds and depositing the proceeds with CCB Labuan.

Also, the earlier reports note the bond was to be traded on Malaysia’s digital asset exchange FUSANG. The bond had participation open for both retail and institutional investors. Moreover, the minimum investment requirement was only $100.

In an official statement, FUSAND said that it has accepted this decision and is immediately suspending the listing. It has also ensured the orderly withdrawal of all associated listing processes and procedures. FUSANG noted that it has initiated the return of all investors’ funds. In the official press release, Henry Chong, CEO of the FUSANG Exchange said:

“While we are disappointed that this Listing has been suspended, there were no legal, regulatory, operational, or technical issues with the FUSANG platform or the IPO process and filing. The overwhelming investor interest and demand for this landmark USD 3 billion program has been a fantastic validation of the digital issuance and listing process that we have created, and it is unfortunate that the Listing Sponsor has decided that they are unable to proceed with this Listing.”

CCB’s Twisting Statements on Bitcoin

Earlier this month when the news of the blockchain-bond broke out, investors remained surprised on CCB’s soft stand for Bitcoin. Knowing the fact that China has been cracking down severely on Bitcoin, investors remained skeptical. The world’s second-largest bank has declined to comment anything on the matter.

However, it has added that it doesn’t accept Bitcoin (BTC) and CCB Labuan is not the issuer. FUSANG noted that working with the CCB on the digital bonds issue has helped it in several legal and regulatory requirements. However, the recent pull-back from CCB has upset the investors.

The Malaysian Exchange noted that it’s willing to work in the future with the CCB for bond issuances in currencies other than USD.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Bitcoin Worries ‘Fading’ as Crypto Goes Mainstream, S&P Says

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Bitcoin has “a lot of similarities” with gold, and consumer fears of the cryptocurrency being stolen are fading, according to a new report from a unit of the bond-rating and investment-index firm Standard & Poor’s.

“Concerns of bitcoin theft were rampant a few years ago,” Jim Wiederhold, associate director for commodities and real assets for S&P Dow Jones Indices, said in excerpts of the report emailed by a press representative for the New York-based company. “As Bitcoin becomes more mainstream, these worries are fading, though lingering technology and exchange counterparts risks remain.”

S&P joins a growing list of Wall Street firms to weigh in on bitcoin after prices for the cryptocurrency quadrupled in 2020, generating fresh interest among big institutional investors including BlackRock, the world’s biggest money manager.

Some highlights from the S&P report:

Bitcoin prices have a one-year volatility of 82%, multiples of the 15% seen in gold prices, and the 26% volatility shown by the S&P 500 Index of large U.S. stocks, according to the report.

The report comes as S&P itself is angling to get into the crypto market. The firm announced last month a partnership with data provider Lukka to launch crypto indexes in 2021.



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Bitcoin White Paper Now Hosted by Everyone From Square to Facebook. Here’s Why

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Some of the Bitcoin community’s most prominent voices (and also Facebook subsidiary Novi) are now hosting the Bitcoin white paper.

The move follows legal threats from nChain Chief Scientist Craig Wright levied against the nonprofit that has long hosted crypto’s foundational document.

“Yesterday both Bitcoin.org and Bitcoincore.org received allegations of copyright infringement of the Bitcoin whitepaper by lawyers representing Craig Steven Wright,” the nonprofit wrote Thursday morning.

(Bitcoin was created by the pseudonymous Satoshi Nakamoto, who has yet to be conclusively identified; Wright has repeatedly made claims that he is Satoshi.)

Seemingly in response to the takedown notice, a wave of crypto firms have published the white paper on their websites. As of press time they include:

Others are likely to join in.

This is a developing story and will be updated.



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Signature Bank Adds $2.5B in Non-Interest Bearing Deposits in Q4

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Cryptocurrency firms are often a rich source of low-cost deposits for the few banks that openly serve the sector. As such, analysts have paid close attention to non-interest bearing deposit growth at Signature. These deposits represent nearly 30% of total deposits at the bank.

Total deposits increased at the bank quarter over quarter by $8.98 billion, with money market deposits representing the lion’s share.

Signature’s average cost of deposits and average cost of funds for the fourth quarter of 2020 decreased by 66 and 69 basis points to 0.42% and 0.57%, respectively.



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