China has taken one other step into blockchain-based finance, however in a manner that avoids direct involvement with cryptocurrencies.
A state-owned agency in Shenzhen has launched a digital bond providing on Ethereum, displaying how the nation is selectively embracing new expertise whereas retaining its laborious stance on crypto buying and selling in place.
First State-Backed RWA Bond On Ethereum
Based on stories, Futian Funding Holding accomplished a 500 million yuan issuance of offshore bonds on August 29.
The bonds, equal to just about $70 million, had been rolled out in Hong Kong and listed on the Ethereum blockchain. They carry a 2.62% annual rate of interest and can expire in two years.
The corporate described the deal as a part of an effort to increase its funding sources whereas additionally responding to the rising use of real-world property and tokenization in world markets.
It additionally pointed to Hong Kong’s supportive insurance policies as an element within the determination, saying the bond aligns with the district’s push to draw digital asset innovation.
Futian Funding Holding Broadcasts 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
Crypto Nonetheless Off-Limits At Dwelling
The transfer doesn’t imply that China has softened its ban on crypto or Ethereum. Again in 2021, Beijing imposed a full ban on crypto mining and buying and selling.
Officers on the time stated the measures had been wanted to manage vitality use and to protect in opposition to dangers which may destabilize the nation’s monetary system.
BTCUSD buying and selling at $110,388 on the 24-hour chart: TradingView
That ban stays in impact right this moment. Strange residents and corporations in mainland China are nonetheless blocked from utilizing or buying and selling cryptocurrencies.
What’s allowed, nonetheless, are restricted experiments like tokenized bonds that keep throughout the bounds of conventional finance.
Hong Kong As A Testing Floor
By routing the deal by way of Hong Kong, Beijing can hold its home ban intact whereas nonetheless signaling that it desires publicity to blockchain-based finance.
The bustling metro has been given extra room to check out digital asset tasks, and this newest bond matches into that function.
China’s technique delineates a transparent cut up: blockchain as a software for finance is embraced in regulated manifestations, whereas crypto as an unfettered market asset remains to be off-limits.
Stablecoins, significantly dollar-denominated stablecoins, have additionally attracted scrutiny in Beijing, with officers involved that they will undermine different currencies based mostly around the globe.
Experiences recommend this RWA bond would be the first in a collection of state-backed blockchain and Ethereum monetary merchandise tied to Hong Kong.
For now, the issuance reveals China’s intent to cautiously discover blockchain with out reopening the door to Bitcoin, stablecoins, or wider crypto adoption.
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