Bank of China’s investment subsidiary, BOCI, has issued CNH 200 million ($28 million) in tokenized securities on the Ethereum public blockchain, with the assistance of Swiss banking giant UBS.
This landmark transaction marks the first time a Chinese financial institution has ventured into issuing tokenized securities on a public blockchain in Hong Kong.
Under the guidance of Hong Kong and Swiss Law, the tokenized securities were issued through the UBS Tokenize service, allowing for increased efficiency and transparency in the market. By embracing blockchain technology, BOCI and UBS are driving the simplification of digital asset markets, providing innovative products catered specifically to customers in the Asia Pacific region.
Ms. Ying Wang, Deputy CEO at BOCI, expressed her satisfaction with being at the forefront of technological and digital finance innovation. This collaboration between BOCI and UBS not only showcases their commitment to revolutionizing the financial industry but also highlights their dedication to promoting Hong Kong’s digital economy and facilitating its digital transformation.
UBS has been an active participant in the blockchain space for some time. Last year, it issued $50 million in blockchain-based debt securities to high net worth individuals based in Hong Kong and Singapore.
The bank has consistently demonstrated its commitment to pushing the boundaries of digital finance, having launched its own $370 million blockchain bond on the Swiss Digital Exchange (SDX) previously, marking the largest native digital security ever issued. Notably, the bond’s central securities depository (CSD) was connected to the conventional SIX CSD, enabling most investors to acquire tokenized securities through traditional means.
The issuance of tokenized securities by BOCI on the Ethereum blockchain serves as a significant milestone, further establishing Hong Kong as a prominent crypto hub amidst mounting regulatory pressures in the United States.
With major financial institutions like Citigroup and Bank of America predicting that the tokenization of real-world assets can drive widespread crypto adoption, the move by BOCI sets the stage for the potential injection of trillions of dollars into blockchain technology.
Ying Wang’s statement reinforces the commitment to Hong Kong’s digital economy, signaling an eagerness to support the digital transformation and innovative development of the city’s financial industry. As the digital finance landscape continues to evolve, BOCI’s groundbreaking endeavor heralds a new era of financial opportunities and technological advancements in Hong Kong and beyond.
This news comes after Chinese giant Ant Group continues innovating in the Web3 space and Beijing highlights its focus on the metaverse in a new white paper.
