The Emergence of Tokenized Securities in China

Last week, BOCI issued CNH 200 million in fully digital structured notes, which was featured by CCTV, a state-sponsored media in China, as the commencement of crypto licensing in Hong Kong.

BOCI, Bank of China’s investment banking arm, issued tokenized securities on Ethereum in Hong Kong. This move has led many to believe that China is slowly easing up its strict crypto regulations, providing a spark of hope in the midst of an unfriendly regulatory environment in the U.S. with no clear crypto regulations and an ongoing crackdown. China’s issuance of tokenized securities in Hong Kong could indicate a positive shift in the country’s stance on cryptocurrencies.

Ethereum: Revolutionizing Tokenized Securities Offerings

BOCI, a Chinese financial institution, has issued tokenized securities worth CNH 200 million, making history in Hong Kong. This follows UBS, a multinational diversified financial services company, issuing a $50 million tokenized fixed-rate note last December. The issuance of these digital securities is a major step in terms of applicable law and blockchain technology, as it is the first product of its kind in the Asia Pacific constituted under Hong Kong and Swiss law and tokenized securities on the main Ethereum blockchain. Hong Kong’s release of new cryptocurrency industry guidelines this month signifies its progress in the blockchain space.

Crypto Licensing Commences in Hong Kong, Marking a Shift in China’s Stance

China’s white paper on Web 3 innovation and development in May has drawn attention from the crypto community. CCTV, a state-sponsored media, highlighted Hong Kong’s first-ever crypto licensing after previously banning digital assets. China’s relaxed crypto regulations benefit the country but pose a risk to the US if businesses relocate.

BOCI and UBS: Pioneering Digital Finance Solutions in Asia Pacific

Bank of China and UBS collaborate to simplify digital asset markets and products in Asia Pacific. BOCI aims to drive Hong Kong’s financial industry’s digital transformation and is encouraged by the evolving digital economy. BOCI and UBS are aiding customers in Asia Pacific by offering blockchain-based digital structured products for accessing digital finance solutions.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

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Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.