• 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.
• This transaction is the first of its kind in Asia-Pacific.
Bank of China Makes History
Bank of China’s subsidiary, BOCI has made history after becoming the first Chinese financial institution to issue tokenized security in Hong Kong. The bank issued CNH 200 million ($28 million) worth of digital structured notes based on Ethereum blockchain with Investment banking company UBS originating the product which was then allocated to clients across Asia-Pacific region.
UBS and BOCI Partnership
This milestone also indicates an ongoing partnership between BOCI and UBS as they explore further transactions including for third parties in order to meet the rising demand for fixed-income investment among Asian investors. UBS had previously issued $50 million in tokenized fixed-rate notes under English and Swiss law back in December 2022 with a tenor of six months, which was tokenized on an Ethereum-based blockchain. It had also conducted an inaugural senior unsecured digital bond pricing amounting to $404 million in three year digital bonds back November 2022.
Ms Ying Wang’s Statement
Ms Ying Wang, Deputy CEO at BOCI commented on this milestone saying: “BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance… We are encouraged by the evolution of Hong Kong’s digital economy and are committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry.“
First Of Its Kind In Asia Pacific
The transaction marks yet another historic moment as it is recorded as the first Chinese bank to issue tokenized security as well as being first of its kind within Asia Pacific region. This signifies an important step towards achieving simplification within digital asset markets due to updating applicable laws alongside exploring different types of blockchains that can be used during such transactions.
Overall, this monumental move reflects just how far both entities have come even since their initial agreement was formed months prior with UBS issuing $50 million worth tokens under Swiss law last December 2022 alongside completing their inaugural senior unsecured digital bond pricing amounting $404 million back November 2022 respectively; thus demonstrating their commitment towards developing a robust system for better customer experience when it comes to investing into fixed income products within Asian Markets through adoption Blockchain Technology & Digital Assets such as tokens & coins amongst other services .