Bank of China’s investment bank subsidiary, BOCI, has announced the issuance of 200 million Chinese yuan ($28 million) worth of digital structured notes on the Ethereum blockchain. This move establishes BOCI as the first Chinese financial institution to issue a tokenized security in Hong Kong. UBS, an investment banking company, assisted in originating the product for placement in the Asia-Pacific region. UBS has been actively expanding its tokenization efforts across various financial instruments.
Ying Wang, the deputy CEO of BOCI, expressed their focus on simplifying digital asset markets and products for customers in the Asia-Pacific region. The collaboration with UBS aims to develop blockchain-based digital structured products tailored to customers in this region.
This development aligns with Hong Kong’s increasing involvement in the cryptocurrency and blockchain industry. Hong Kong recently opened crypto exchange access for retail users and expressed its active participation in the blockchain sector. The government of Hong Kong aims to establish a regulatory framework for stablecoins within a year.
Hong Kong has been at the forefront of embracing blockchain technology. In February, it issued an HK$800 million green bond tokenized on Goldman Sachs’ protocol. Additionally, the introduction of two cryptocurrency futures exchange-traded funds in December 2022 raised over $70 million prior to their launch. These initiatives highlight Hong Kong’s commitment to fostering innovation in the financial industry.
