Bank of China issues $28M in digital structured notes on Ethereum blockchain

On June 12th, BOCI, the investment bank subsidiary of Bank of China, declared the issuance of digital structured notes with a worth of 200 million Chinese yuan (approximately $28 million) minted on the Ethereum blockchain. This makes BOCI the first Chinese financial institution to issue a tokenized security in Hong Kong. Investment banking firm UBS assisted in the production of the product for its clientele in the Asia-Pacific region. Ying Wang, the deputy CEO of BOCI, commented on the matter.

Concurrently with the progress, UBS has been broadening its tokenization across structured products, fixed income, and repurchase agreements. In December 2022, the company issued a tokenized fixed-rate note worth $50 million, which was digitized on a permissioned blockchain and operated under English and Swiss regulations.

On June 1st, Cointelegraph reported that Hong Kong was allowing retail users to access a cryptocurrency exchange. Approximately two weeks later, Joseph Chan Ho-lim, the Under Secretary for Financial Services and the Treasury for the Government of Hong Kong, declared that the Special Administrative Region is actively taking part in the blockchain industry and plans to create a regulation framework for stablecoins in the span of one year.

On February 16th, Hong Kong launched an HK$800 million green bond, which was tokenized using Goldman Sachs’ GS DAP tokenization protocol and had an annual yield of 4.05%. In December of 2022, two cryptocurrency futures exchange-traded funds were introduced in Hong Kong, and they managed to raise more than $70 million prior to their launch.

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