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One of the world’s largest banks has withdrawn a $3 billion blockchain bond that was to be traded on a Malaysian digital assets exchange. The China Construction Bank had postponed the trading of the bond at first before eventually withdrawing it.

Reports emerged on November 11 revealing that CCB would be listing the $3 billion bond at the Fusang digital assets exchange in Labuan, Malaysia. The CCB branch in Labuan, an offshore financial haven most popular as a tax haven, was the lead arranger and listing sponsor of the bond.

The branch was to issue the bond through Longbond Ltd, a special purpose vehicle it created to issue digital bonds.

However, as Reuters reports, CCB sent a letter to Fusang exchange postponing the listing on November 13, a day before the bond was to be traded. A week later on November 20, the bank informed the exchange that it had withdrawn the bond and the issuance would not proceed.

In its statement, FUSANG revealed that CCB had notified the Labuan Financial Services Authority about the cancellation. It stated that it would ensure “an orderly withdrawal of all related listing processes and procedures, and has initiated the return of all investors’ funds.”

CCB bank did not give any reason for the suspension of the landmark bond, Fusang CEO Henry Chong stated. He added:

“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.”

As per a report by the South China Morning Post, the cancellation may have to do with the People’s Bank of China’s digital yuan efforts. “CCB’s digital bonds, which can be bought and traded using US dollars or bitcoin, appear to undermine efforts to safeguard its currency sovereignty,” the paper claimed.

See also: CoinGeek Live panel on The Future of Exchanges & Trading in a Tokenized World

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