Bank of China's BOCI Makes Groundbreaking Move with First Ethereum-Based Tokenized Security in Hong Kong
BOCI, in collaboration with UBS, achieved the significant milestone of being the inaugural Chinese financial institution to release a tokenized security in Hong Kong.
Because Bitcoin
June 12, 2023
UBS reported that in a groundbreaking achievement, BOCI has successfully launched CNH 200 million fully digital structured notes, making it the first Chinese financial institution to issue a tokenized security in Hong Kong. This remarkable milestone is a result of the collaborative efforts between BOCI and UBS, emphasizing their longstanding partnership in the realm of digital structured notes.
UBS had previously introduced a tokenized fixed rate note worth USD 50 million in December 2022, following English and Swiss law, and implemented on a permissioned blockchain.
The issuance of these digital securities by both BOCI and UBS signifies significant advancements in terms of applicable laws and blockchain technologies. This transaction not only establishes the first product of its kind in Asia Pacific, adhering to both Hong Kong and Swiss law, but also tokenizes it on the Ethereum blockchain, thereby successfully integrating regulated securities onto a public blockchain.
As a member of the BOC Group and an overseas investment banking institution, BOCI boasts a rich history of serving diverse clients through continuous product innovation. BOCI holds the distinction of being the first Chinese financial institution to issue structured notes overseas. Presently, it is a leading issuer in China, offering a comprehensive range of products, high-volume issuance, and complete services to its clients.
Ms. Ying Wang, Deputy CEO at BOCI, expressed great satisfaction in spearheading technology finance and digital finance innovation. She highlighted the collaboration with UBS as instrumental in simplifying digital asset markets and products for customers in Asia Pacific, particularly through the development of blockchain-based digital structured products tailored to their needs. Ms. Wang also conveyed optimism about Hong Kong's digital economy evolution and reiterated BOCI's commitment to promoting the digital transformation and innovative development of the financial industry in Hong Kong.
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