BOCI and UBS Make History with Tokenized Security Issuance in Hong Kong jpg

BOCI and UBS Make History with Tokenized Security Issuance in Hong Kong

BOCI, a subsidiary of the Bank of China, has made a major breakthrough in the world of finance. It has recently unveiled the issuance of CNH 200 million worth of digital structured notes, marking a historic moment as the first Chinese financial institution to introduce a tokenized security in Hong Kong.

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This groundbreaking achievement was made possible through a collaborative effort with UBS, a prominent investment banking company. The product was tailored specifically for clients in the Asia-Pacific region, showcasing a strong commitment to streamlining digital asset markets and products.

UBS has been actively expanding its tokenization endeavors across various sectors, encompassing structured products, fixed income, and repo financing. Notably, the company successfully launched a $50 million tokenized fixed-rate note in December 2022, leveraging English and Swiss law and employing a permissioned blockchain for digitization.

BOCI and UBS Make History with Tokenized Security Issuance in Hong Kong

This development aligns with Hong Kong’s increasing involvement in the blockchain industry. The region has recently granted retail users access to cryptocurrency exchanges and has shown proactive engagement in the blockchain space.

Hong Kong has already achieved significant milestones in tokenization. In February 2023, they introduced an HK$800 million green bond tokenized on Goldman Sachs’ GS DAP tokenization protocol, offering an annual yield of 4.05%. Furthermore, in December 2022, Hong Kong unveiled two exchange-traded funds for cryptocurrency futures, amassing over $70 million in funding prior to their launch.

The collaboration between BOCI and UBS not only signifies a significant achievement for tokenized securities in Hong Kong but also underscores the immense potential of blockchain technology in transforming the financial landscape. With their combined expertise and unwavering dedication to innovation, both institutions are poised to drive further advancements in the realm of digital finance.

Compiled by Coinbold