# ICBC TO ISSUE FIRST RENMINBI CERTIFICATE OF DEPOSIT TO SETTLE IN U.S. Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-05-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: ICBC leads initiative to establish RMB trading in the U.S. Meta Description: Working Group chaired by Bloomberg launches RMB-denominated CD settled in the U.S., strengthening financial cooperation between U.S. and China. URL: https://financedigest.com/icbc-to-issue-first-renminbi-certificate-of-deposit-to-settle-in-u-shtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/hdtrv1-1736844740033-compressed.jpg) **_Members of the Working Group Chaired by Michael_** **_R. Bloomberg Lead_** **_Effort to Establish Trading and Clearing of RMB in the U.S._** **_BNY Mellon Corporate Trust to Act as Issuing Agent with DTCC to Settle RMB Transaction_** [Industrial and Commercial Bank of China](http://www.icbc.com.cn/ICBC/sy/) (ICBC) has taken the first steps to enable institutions to issue and clear financial products denominated in Chinese Renminbi (RMB) in the U.S. ICBC is the largest bank in the world by total assets, _tier 1 capital and pre-tax revenue_. ICBC’s New York Branch issued an RMB-denominated certificate of deposit (CD) today which will be settled in the U.S. Trading and settlement of the RMB-denominated CD opens the door for other borrowers looking to issue RMB-denominated securities in the U.S. This will further strengthen the financial cooperation between the two countries, according to a working group of prominent financial [leaders](https://www.financedigest.com/now-is-the-time-for-finance-leaders-to-take-on-a-more-strategic-and-valuable-role.html "Now is the time for finance leaders to take on a more strategic and valuable role"). The Working Group on U.S. RMB Trading and Clearing aims to evaluate [opportunities to develop](https://www.financedigest.com/fish-protein-market-exploring-future-growth-2021-2031-opportunities-development.html "Fish Protein Market Exploring Future Growth 2021-2031 | Opportunities & Development") and expand the trading, clearing and settlement of RMB in the United States. The Group is chaired by Michael R. Bloomberg, with Mary Schapiro serving as Vice-Chair and Thomas J. Donohue, Timothy F. Geithner and Henry M. Paulson, Jr. serving as Co-Chairs. ICBC, DTCC and BNY Mellon are members of the Working Group. ICBC Chairman Jiang Jianqing will meet today with [Bloomberg to discuss the new product](https://www.financedigest.com/apple-plans-to-cut-iphone-14-production-lag-between-china-india-bloomberg.html "Apple plans to cut iPhone 14 production lag between China, India – Bloomberg"). “The launch represents a significant milestone in serving to meet the [growing demands](https://www.financedigest.com/frances-axa-q1-sales-rise-2-as-property-policy-demand-grows.html "France’s AXA Q1 sales rise 2% as property policy demand grows") among investors in the United States and around the world to have access to the RMB,” said Jiang. “The RMB is an increasingly important part of the global payments system, as payments in this currency are [growing faster than overall global](https://www.financedigest.com/fish-based-pet-food-market-to-surpass-us-16213-2-mn-as-demand-for-pet-food-with-high-nutritional-value-grows-globally.html "Fish Based Pet Food Market to Surpass US$ 16,213.2 Mn as Demand for Pet Food with High Nutritional Value Grows Globally") payments in all currencies.” I’m pleased to see members of the Working Group taking this concrete step to further develop RMB [markets in the United](https://www.financedigest.com/vapour-recovery-units-market-is-expected-to-register-a-decent-cagr-of-more-than-5-during-the-forecast-period-of-2019-2029.html "Vapour Recovery Units Market is expected to register a decent CAGR of more than 5% during the forecast period of 2019-2029") States,” said Bloomberg. “I’m confident this will be the first of many developments to come.” The value of RMB payments increased 18.46 percent from February 2016 to March 2016, compared with a 10.67 percent increase in all payments currencies during the same period, according to SWIFT. In March, SWIFT reported that the RMB was the fifth most active currency for [global payments by value](https://www.financedigest.com/cellulose-derivative-excipient-market-is-estimated-to-reach-a-global-value-of-around-us-500-mn-by-the-end-of-2029.html "Cellulose Derivative Excipient Market Is Estimated To Reach A Global Value Of Around US$ 500 Mn By The End Of 2029  ") with a share of 1.88 percent, a slight increase from 1.74 percent in February 2016. The fixed rate CD is valued at 500 million RMB, has a 31-day maturity and is the first RMB-denominated financial product eligible to be settled through The Depository Trust Company, a wholly owned subsidiary of The Depository Trust & Clearing Corp ( [DTCC](http://www.dtcc.com/)). Previous issuances of RMB-denominated CDs by New York branches of Chinese banks were settled through Euroclear in Europe. [BNY Mellon Corporate Trust](https://www.bnymellon.com/) is the issuing and paying agent on the CD. “Our [Corporate Trust team looks forward to its future](https://www.financedigest.com/what-does-the-future-hold-for-corporate-payments.html "What Does the Future Hold for Corporate Payments?") collaboration with ICBC and DTCC and providing its solutions for trading, clearing and settlement of RMB in the U.S.” said Brian Shea, [Chief Executive Officer](https://www.financedigest.com/future-market-insights-appoints-aditi-basu-as-chief-marketing-officer.html "Future Market Insights Appoints Aditi Basu as Chief Marketing Officer") of Investment Services at BNY Mellon. “This innovation [paves the way](https://www.financedigest.com/increasing-awareness-of-infant-health-is-paving-way-for-baby-sleeping-bags-market-sales.html "Increasing Awareness Of Infant Health Is Paving Way For Baby Sleeping Bags Market Sales") for us to further develop connections into major RMB trading and clearing centers across the world.” “DTCC is proud to support the efforts of the RMB [industry working](https://www.financedigest.com/hybrid-working-a-risk-or-opportunity-for-the-financial-services-industry-2.html "Hybrid working: a risk or opportunity for the financial services industry?") group as it looks to increase financial cooperation and activity between the U.S. and China,” said Michael Bodson, [Chief Executive Officer](https://www.financedigest.com/impact-com-names-hubspot-veteran-kim-walsh-as-chief-growth-officer.html "impact.com Names HubSpot Veteran Kim Walsh as Chief Growth Officer") of DTCC. “The issuance of the RMB-denominated CD in the U.S. is an important milestone and we are honored to [play a critical role](https://www.financedigest.com/advisors-must-play-a-bigger-role-in-unlocking-scale-up-potential.html "Advisors must play a bigger role in unlocking scale up potential") in this initiative, in partnership with ICBC and BNY Mellon.” --- This blog is powered by Superblog. 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