Bank

Bitcoin

Hua Xia Bank, a publicly traded financial institution linked to China’s government, issued 4.5 billion yuan ($600 million) in tokenized bonds on Wednesday, aiming to reduce clearing friction by removing intermediaries from the auction process.
According to <a href="https://finance.sina.com.cn/jryx/bank/2025-12-03/doc-infzpnec0071813.shtml" rel="noopener noreferrer nofollow">Sina</a>, the onchain government bonds were issued by Hua Xia Financial Leasing, a subsidiary of Hua Xia Bank, a state-controlled commercial bank in China. The bonds offered a three-year fixed yield of 1.84% to holders.
The $600 million bond tranche was auctioned off exclusively to holders of <a href="https://cointelegraph.com/learn/articles/an-overview-of-chinas-digital-yuan" rel="noopener noreferrer nofollow">China’s digital renminbi</a>, also known as the digital yuan.
<figure>
 <img alt="China, Yuan, Stablecoin, CBDC, Tokenization, RWA Tokenization" src="https://s3.cointelegraph.com/uploads/2025-12/019aeb28-4268-7c15-83ea-af367e6c026f" title="">
 <figcaption>
 Overview of tokenized government securities market, excluding US government assets. Source: <a href="https://app.rwa.xyz/government-bonds" rel="noopener noreferrer nofollow">RWA.XYZ</a>
 </figcaption>
</figure>
Tokenized bonds may <a href="https://cointelegraph.com/news/ecb-digital-bond-trials-fail-bring-issuance-costs-down-moodys" rel="noopener noreferrer nofollow">reduce the number of intermediaries</a> needed for transaction clearing, shortening settlement times and lowering transaction costs.
China has flip-flopped on the issue of stablecoins and cryptocurrencies in 2025, choosing instead to develop a <a href="https://cointelegraph.com/learn/articles/what-are-cbdcs-a-beginners-guide-to-central-bank-digital-currencies" rel="noopener noreferrer nofollow">central bank digital currency</a> (CBDC) and state-sanctioned uses of permissioned blockchain technology, as digital assets become geostrategically important.
Related: <a href="https://cointelegraph.com/news/china-crypto-crackdown-stablecoin-concerns" rel="noopener noreferrer nofollow">China reaffirms crypto ban after noticing ‘speculation has resurfaced’</a>
<h2 id="mixed-signals-coming-from-china-as-crypto-becomes-more-relevant">Mixed signals coming from China as crypto becomes more relevant</h2>
China’s government continues to change course on stablecoins and cryptocurrencies, alternating between attempted bans and relaxing regulations to allow private companies to operate in the space.
In early August, China cracked down on local brokers and financial companies holding stablecoin seminars in the country and instructed these businesses to <a href="https://cointelegraph.com/news/chinese-regulators-urge-local-businesses-to-stop-stablecoin-promotion" rel="noopener noreferrer nofollow">cancel any slated events</a> and to stop publishing research on the subject.
At the time, Chinese regulators were concerned that stablecoins could be a vector for fraudulent activity in the country, according to <a href="https://www.bloomberg.com/news/articles/2025-08-08/china-tells-brokers-to-stop-touting-stablecoins-to-cool-frenzy" rel="noopener noreferrer nofollow">Bloomberg</a>.
Less than two weeks later, <a href="https://www.reuters.com/business/finance/china-considering-yuan-backed-stablecoins-boost-global-currency-usage-sources-2025-08-21/" rel="noopener noreferrer nofollow">reports</a> emerged that China’s government was considering <a href="https://cointelegraph.com/news/china-considering-yuan-backed-stablecoins-global-currency-usage" rel="noopener noreferrer nofollow">legalizing privately-issued yuan stablecoins</a> to boost the fiat currency’s presence in foreign exchange markets.
Chinese technology companies, including Alibaba, Ant Group and JD.com, saw this as a green light to begin developing yuan-pegged tokens, but a <a href="https://cointelegraph.com/news/china-tech-giants-halt-hong-kong-stablecoin-plans" rel="noopener noreferrer nofollow">warning from Beijing in October</a> about private stablecoins put those plans on pause.
The People’s Bank of China, the country’s central bank, <a href="https://cointelegraph.com/news/china-opens-shanghai-digital-yuan-hub-blockchain-services" rel="noopener noreferrer nofollow">established an operations center </a>for the digital yuan in September. The hub, based in Shanghai, will oversee cross-border settlement and development of other blockchain-related initiatives.&nbsp;
Magazine: <a href="https://cointelegraph.com/magazine/defi-officially-unlocks-japans-yen-dbs-btc-options-asia-express/" rel="noopener noreferrer nofollow">China officially hates stablecoins, DBS trades Bitcoin options: Asia Express</a>

Hua Xia state-linked Chinese bank tokenizes $600M in yuan bonds

Table of Contents

Cointelegraph

Other articles published on Dec 4, 2025

Join our free newsletter for daily crypto updates!