On June 12, Bank of China investment banking subsidiary BOCI Announced the issuance of 200 million Chinese yuan ($28 million) in digital structured notes minted on the Ethereum blockchain. The move makes BOCI the first Chinese financial institution to issue a tokenized security in Hong Kong. Investment banking firm UBS helped originate the product for placement with its client in the Asia-Pacific region. Ying Wang, BOCI Deputy Executive Director, commented:
“Working together with UBS, we are driving the simplification of digital asset markets and products for Asia Pacific clients through the development of blockchain-based digital structured products designed specifically for Asia Pacific clients.”
Concurrent with the development, UBS has been expanding its tokenization through structured products, fixed income, and repo financing. The firm issued a $50 million tokenized fixed rate note in December 2022 under English and Swiss law, digitized on a permissioned blockchain.
Cointelegraph previously reported that Hong Kong opened access to the crypto exchange for retail users starting June 1. About two weeks later, Joseph Chan Ho-lim, Undersecretary for Financial Services and Treasury of the Hong Government, fixed that the special administrative region is “actively participating” in the blockchain industry and aims to establish a framework for the regulation of stablecoins within a year.
On February 16, Hong Kong issued a HKD 800 million green bond tokenized on Goldman Sachs’ GS DAP tokenization protocol with an annual yield of 4.05%. In December 2022, Hong Kong introduced two exchange-traded funds for cryptocurrency futures, raising more than $70 million before launch.
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