Bank of China Embraces Digital Innovation: Issues $28M in Ethereum-based Digital Structured Notes

BOCI, Bank of China's investment bank subsidiary, has become the first Chinese financial institution to issue a tokenized security in Hong Kong, with the help of UBS, by issuing 200 million Chinese yuan ($28 million) worth of digital structured notes minted on the Ethereum blockchain.

BOCI, the investment bank subsidiary of Bank of China, issued a tokenized security worth $28 million in Hong Kong. UBS, an investment banking company, helped originate the product for placement to its client in the Asia-Pacific region. Ying Wang, BOCI’s deputy CEO, aims to simplify digital asset markets in Asia Pacific with blockchain-based products. This is a major step forward in the digital asset markets and products in the Asia-Pacific region.

UBS Expands Tokenization Efforts in Structured Products and Fixed Income

While developing its project, UBS has expanded tokenization efforts in structured products, fixed income, and repo financing. In December 2022, the company tokenized a $50 million fixed-rate note on a permissioned blockchain, complying with laws.

Approximately two weeks later, Joseph Chan Ho-lim, the under-secretary for financial services and the treasury for the government of Hong Kong announced that the region is actively involved in the blockchain industry and has set a goal of establishing a regulatory framework for stablecoins within the next year.

On Feb 16, Hong Kong issued an HK$800 million tokenized green bond using Goldman Sachs‘ GS DAP protocol. The bond carried an annual yield of 4.05%. In December 2022, Hong Kong launched two cryptocurrency futures ETFs that raised over $70 million in funding.

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