FTID Token 001:
In August 2025, Futian Investment Holding Co., Ltd., a state-owned enterprise based in Shenzhen, China, officially launched FTID Token 001 on the Ethereum public blockchain through a Hong Kong-based issuance. The token was subsequently connected to the Shenzhen and Macau securities markets. This marks the first publicly listed RWA digital bond issued on Ethereum by a Chinese state-owned entity, and serves as a notable step in the broader internationalization of the Chinese RMB.
Issuance Overview
FTID Token 001 was issued by Futian Investment Holding, wholly owned by the Shenzhen State-owned Assets Supervision and Administration Commission. The total issuance was RMB 500 million (approximately USD 69 million), with a two-year maturity and a fixed annual coupon of 2.62%, rated A- by Fitch.
The bond was issued offshore in Hong Kong and concurrently registered as a security token on the Ethereum blockchain. It is also tradable on both the Shenzhen and Macau exchanges, achieving a dual-track structure integrating blockchain and traditional capital markets. GF Securities (Hong Kong) acted as the Token Registrar, Calculation Agent, and DLT Payment Agent.
Unlike traditional RMB-denominated bonds, FTID Token 001 utilizes on-chain issuance and settlement, offering several advantages:
- Increased Transparency: Immutable on-chain records reduce information asymmetry.
- Improved Settlement Efficiency: Faster issuance and trading with fewer intermediaries.
- Enhanced Global Accessibility: Offshore investors can participate via public blockchain infrastructure without relying entirely on domestic clearing systems.
Comparable Developments in Europe and Switzerland
Europe and Switzerland began experimenting with on-chain bond issuance several years ago. Notable cases include:
1. European Investment Bank (EIB) Digital Bond
- In 2021, the EIB issued a €100 million, 2-year digital bond on Ethereum, underwritten by Goldman Sachs, Santander, and Société Générale.
- This was a pilot project intended to validate the feasibility of supranational bond issuance on public blockchains.
- The yield was minimal (in line with EU sovereign debt), targeting conservative investors.
2. Switzerland’s SIX Digital Exchange (SDX) Digital Bonds
- Backed by the Swiss central bank and government, SDX has issued several on-chain bonds denominated in CHF and EUR.
- Issuers include the Swiss government, central bank, and large corporations.
- These bonds are issued on a regulated permissioned chain and traded within the SDX ecosystem, offering strong compliance and stability.
- Yields are comparable to traditional debt instruments and mainly appeal to institutional investors.
Key Comparisons
- Like the EIB bond, FTID Token 001 is issued on Ethereum, but it carries stronger funding intent, whereas the EIB issuance was more experimental.
- Like the SDX bonds, FTID Token 001 is backed by a sovereign-linked entity, but it adopts a dual-listing approach (public blockchain + traditional exchanges).
- At 2.62%, FTID Token 001 offers returns closer to emerging market debt, making it more attractive from a yield perspective.
Investment Outlook
FTID Token 001 presents several compelling opportunities:
1. Yield Advantage
Swiss sovereign bonds currently yield below 1%, with some nearing zero or negative rates. In contrast, FTID Token 001 offers a 2.62% fixed return, exceeding yields from most Northern European government bonds.
2. Diversification into RMB Assets
Despite China’s economic weight, RMB-denominated assets remain underrepresented in global portfolios. FTID Token 001 offers a low-friction entry point into China’s debt market, fitting well into emerging market allocations.
3. Carry Trade & FX Speculation
Investors may explore carry trades by borrowing in low-yield currencies (e.g., JPY) and investing in RMB-denominated FTID Tokens. If the RMB appreciates, investors could benefit from both interest rate differentials and FX gains.
4. Future Integration with DeFi Ecosystems
Should FTID Token 001 be accepted as collateral within DeFi protocols, similar to how BlackRock’s BUIDL token is used in MakerDAO, it could unlock liquidity and broader use cases, further enhancing its investment appeal.