CITD to Issue HK$100 Million Bonds Utilizing Blockchain

blockchain.news:

China Information Technology Development Limited (CITD) (HKEX: 8178), a leading technology company specializing in AI and cloud technologies, has announced its plan to issue HK$100 million worth of Bonds using distributed ledger technology (DLT). The proposed issuance aims to revolutionize the bond market by leveraging blockchain and smart contract technologies.

The Bonds, with a maturity date set for June 27, 2053, will be documented using the Digital Ownership Token (DOT) standard and implemented through a binding Ricardian Contract. By incorporating all bond documents and smart contract codes into the Bond Security Token, CITD ensures that the Token itself becomes the security, providing greater certainty, efficiency, and security for bond holders. Moreover, this approach allows investors to directly hold and control their own securities, eliminating the need for a third-party custodian.

The use of DOT standard in the Bond Security Token sets a new precedent in the bond market, offering enhanced security and transparency compared to traditional paper-based bond offerings. The tokenization of debt instruments using DOTs enables a clear record of ownership and simplifies the transferability of securities. Additionally, the elimination of third-party custodians reduces risks associated with securities custody.

CITD's decision to embrace DLT and the DOT standard aligns with its strategic vision for the development of Web3.0 and blockchain business. As the Hong Kong government actively supports the growth of Web3.0 and decentralized finance (DeFi) industries, CITD aims to leverage its expertise in digital transformation to pioneer innovative solutions in various sectors, including finance, healthcare, and logistics.

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