Bank of China investment bank BOCI issued fully digital structured notes worth 200 million of offshore renminbi ($28 million) on the Ethereum blockchain, making it the first Chinese financial institution to issue a tokenized security in Hong Kong.
UBS, the originator and partner of BOCI in this transaction, emphasized the significance of this milestone, stating, "This transaction marks a historic milestone in the Asia Pacific region, as it represents the first product of its kind constituted under both Hong Kong and Swiss law and tokenized on the main Ethereum blockchain. It successfully introduces regulated securities onto a public blockchain, paving the way for new possibilities and opportunities."
This remarkable accomplishment follows the successful issuance of a $50 million tokenized fixed rate note by UBS in December on a permissioned blockchain. The dedication of both BOCI and UBS to embrace digital innovation in the financial sector is truly commendable.
By leveraging the #Ethereum #blockchains , BOCI and UBS aim to usher in a new era of transparency, efficiency, and accessibility in the issuance and trading of securities. This move towards tokenization holds immense potential for streamlining processes, reducing costs, and enhancing liquidity within the financial ecosystem.
The decision to tokenize securities highlights the growing acceptance and recognition of the transformative power of blockchain technology within the traditional financial sector. It serves as a testament to the adaptability of established financial institutions as they embrace cutting-edge technologies, propelling the industry towards a more digitized and decentralized future.
The Hong Kong Transformation:
We are driving the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products, designed specifically for customers in Asia Pacific," Ying Wang, Deputy CEO at BOCI, said in the statement. "We are encouraged by the evolution of Hong Kong's digital economy and are committed to promoting the digital transformation and innovative development of Hong Kong's financial industry.”
The move comes amid a flurry of activity in Hong Kong after it released new guidelines for the crypto industry on June 1. First Digital said earlier this month that it is introducing a new stablecoin that will be pegged to the U.S. dollar but regulated in Asia.
#China , meanwhile, has been the subject of much speculation about its crypto plans after it released a white paper for web3 innovation and development last month. Binance CEO #ChangpengZhao "CZ" Zhao said that Chinese-speaking communities had been "buzzing" after state broadcaster China Central Television appeared to broadcast a segment about cryptocurrencies that featured the #bitcoin logo