Hua Xia Bank, a Chinese government-linked financial institution, issued $600 million in tokenized bonds to streamline clearing processes. The bonds, offering a 1.84% fixed yield over three years, were exclusively available to holders of China’s digital renminbi.

China’s stance on stablecoins and cryptocurrencies fluctuates, with recent crackdowns on seminars and research raising concerns about fraudulent activities. Despite this, reports emerged of China considering legalizing privately-issued yuan stablecoins to boost the fiat currency’s presence in foreign exchange markets.

The People’s Bank of China established a digital yuan operations center in Shanghai to oversee cross-border settlement and blockchain initiatives. Chinese tech companies, including Alibaba, Ant Group, and JD.com, began developing yuan-pegged tokens following reports of potential legalization, only to pause plans after a warning from Beijing in October.

Read more at Cointelegraph: Chinese Bank Tokenizes $600M in Yuan-Backed Government Bonds