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.
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.
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.
What is allowed, however, are limited experiments like tokenized bonds that stay within the bounds of traditional 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.
For now, the issuance shows China’s intent to cautiously explore blockchain without reopening the door to Bitcoin, stablecoins, or wider crypto adoption.
Featured image from Agoda, chart from TradingView
