China Construction Bank (CCB), the world’s second-largest financial player by market cap, has postponed the issuance of Longbond, a $3 billion blockchain-issued bond that would track the price of government bonds, as per a new announcement.

“Per the request of the issuer, Longbond Ltd., the listing of Longbond SR Notes USD Feb 2021 will be delayed until further notice,” read the announcement by the Fusang exchange, which was scheduled to list the bond and allow investors to purchase it using bitcoin. 

The CCB made headlines last week after its $3 billion bond sale was said to be available to investors via Bitcoin and the U.S. dollar, as per a report on financial publication WSJ

However, the Labuan branch of CCB Malaysia, the bond’s issuer, clarified the report in a note published on its website last week. “The Branch does NOT accept cryptocurrencies including Bitcoin for settlement in any of its banking transactions,” it said.

The notice added the Labuan branch was simply acting as the “Facility Agent” and “Arranger” to facilitate the clearing and the settlement of the bond, but was otherwise not involved in its issuance.

This meant that while the CCB was not directly involved in selling bonds for Bitcoin, the Fusang brokerage would have been. For investors using Bitcoin, the exchange would first convert the asset to U.S. dollars and then use the proceeds to purchase the bonds (which require a $100 minimum purchase).

Steven Wong, the chief operating and financial strategist for CCB Malaysia, said at the time that such an arrangement would not break any laws. “We are taking bank deposits, which is our core business,” he stated, adding, “the bank is not dealing in Bitcoin or cryptocurrencies.”

However, with the issuance now postponed until further notice, those clarifications won’t be needed.

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