The Industrial and Commercial Bank of China (ICBC) has issued a RMB-denominated certificate of deposit to be settled in the US for the first time. 

The move paves the way for other borrowers to issue RMB-denominated securities in the US, following the lead of ICBC and BNY Mellon, which will act as the issuing and paying agent for the certificate.

The fixed rate certificate is valued at RMB500m ($76.2m), and will be the first RMB-denominated financial product eligible for settlement through the DTCC’s Depository Trust Company.

“The launch represents a significant milestone in serving the growing demands among investors in the United States and around the world to have access to the RMB,” said ICBC Chairman Jiang Jianqing. “The RMB is an increasingly important part of the global payments system, as payments in this currency are growing faster than overall global payments in all currencies.”

Previous RMB-denominated certificates of deposit issued in New York by Chinese banks were settled through Euroclear in Europe.

Brian Shea, CEO of investment services at BNY Mellon, said: “This innovation paves the way for us to further develop connections into major RMB trading and clearing centres across the world.”