China has taken another step into blockchain-based finance, but in a way that avoids direct involvement with cryptocurrencies.
A state-owned firm in Shenzhen has launched a digital bond offering on Ethereum, showing how the country is selectively embracing new technology while keeping its hard stance on crypto trading in place.
First State-Backed RWA Bond On Ethereum
According to reports, Futian Investment Holding completed a 500 million yuan issuance of offshore bonds on August 29.
The bonds, equal to nearly $70 million, were rolled out in Hong Kong and listed on the Ethereum blockchain. They carry a 2.62% annual interest rate and will expire in two years.
The company described the deal as part of an effort to expand its funding sources while also responding to the growing use of real-world assets and tokenization in global markets.
It also pointed to Hong Kong’s supportive policies as a factor in the decision, saying the bond aligns with the district’s push to attract digital asset 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
Crypto Still Off-Limits At Home
The move does not mean that China has softened its ban on crypto or Ethereum. Back in 2021, Beijing imposed a full ban on crypto mining and trading.
Officials at the time said the measures were needed to control energy use and to guard against risks that might destabilize the country’s financial system.
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That ban remains in effect today. Ordinary citizens and companies in mainland China are still blocked from using or trading cryptocurrencies.
What is allowed, however, are limited experiments like tokenized bonds that stay within the bounds of traditional finance.
Hong Kong As A Testing Ground
By routing the deal through Hong Kong, Beijing can keep its domestic ban intact while still signaling that it wants exposure to blockchain-based finance.
The bustling metro has been given more room to try out digital asset projects, and this latest bond fits into that role.
China’s strategy delineates a clear split: blockchain as a tool for finance is embraced in regulated manifestations, while crypto as an unfettered market asset is still off-limits.
Stablecoins, particularly dollar-denominated stablecoins, have also attracted scrutiny in Beijing, with officials concerned that they can undermine other currencies based around the world.
Reports suggest this RWA bond may be the first in a series of state-backed blockchain and Ethereum financial products tied to Hong Kong.
For now, the issuance shows China’s intent to cautiously explore blockchain without reopening the door to Bitcoin, stablecoins, or wider crypto adoption.
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