• Bank of China’s subsidiary, BOCI has issued CNH 200 million ($28 million) in digital structure notes minted on the Ethereum blockchain.
• Investment banking company UBS originated the products and was allocated to its clients around the Asia-pacific region.
• Both entities have commenced a journey in terms of applicable laws and blockchain type.
Bank of China Issues $28M in Digital Structured Notes on Blockchain
Bank of China’s subsidiary, BOCI has made history by becoming the first Chinese financial institution to issue tokenized security in Hong Kong. The institution has successfully issued CNH 200 million ($28 million) in digital structure notes minted on the Ethereum blockchain.
UBS Allocated Products Around Asia Pacific Region
Investment banking company UBS originated the products and was allocated to its clients around the Asia-pacific region. This is a result of rising demand for fixed-income investment among Asian investors, which resulted in UBS issuing $50 million in tokenized fixed-rate notes back December 2022 under English and Swiss law with a tenor of six months and was tokenized on an Ethereum-based blockchain. Additionally, UBS also issued $404 million in three-year digital bonds as part of its inaugural senior unsecured digital bond issuance back November 2022.
BOCI Committed To Promoting Digital Transformation
Ms Ying Wang, Deputy CEO at BOCI commented on this milestone stating that BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance; committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry.
Both Entities Commence Journey In Terms Of Applicable Laws And Blockchain Type
This transaction is indicative of an ongoing partnership between BOCI and UBS working together to expand tokenized services across Asia Pacific; commencing a journey towards applicable laws and blockchain type as both strive towards meeting customer demands for fixed income investments while exploring further transactions including for third parties.
Conclusion
The successful issuance by BOCI demonstrates their commitment towards driving simplification through development of blockchain based digital structured products designed specifically for customers within Asia Pacific while signaling ongoing efforts by both entities to explore more applications with regards to tokenization across different markets within the region.
