Bank of China issues $28 million worth of digital structured notes using Ethereum blockchain technology.
BOCI, the investment arm of Bank of China, has issued digital structured notes worth $28 million using the Ethereum blockchain network.
UBS, a global investment bank, said in a recent press release that BOCI has become the first Chinese institution to issue this type of tokenized security in Hong Kong.
The notes were worth CNH 200 million and were initiated by UBS and distributed to clients in the Asia-Pacific region.
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Under Hong Kong and Swiss law, this transaction marks the first product of its kind in Asia-Pacific and is tokenized on the main Ethereum blockchain.
Ying Wang, Deputy CEO at BOCI, said in a statement, “Working together with UBS, we are driving the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products, designed specifically for customers in Asia Pacific.”
UBS previously tokenized fixed-rate notes worth $50 million in December 2022 under English and Swiss law.
According to Aurelian Troendle, Global Head of MTN Trading at UBS AG, “High-frequency issuance activity can benefit from vast efficiency gains through the use of blockchain technology, which will ultimately bring advantages to investors.”
UBS aims to expand its tokenization services across structured products, fixed income, and repo financing.
BOCI offers clients both domestic and overseas a comprehensive range of investment banking services, including corporate finance, financial advisory, private banking, asset management, direct investment, equity derivatives, leveraged and structured finance, and global commodities.
The bank has maintained a leading position in Hong Kong’s IPO, stock trading, bond issuance, and MPF markets and Chinese mainland capital markets for a long time.
Citi Analysts Believe Tokenization Would Drive Crypto Adoption
According to analysts at global investment bank Citi, the rise of CBDCs and the tokenization of real-world assets would power the next wave of mass adoption of blockchain technology.
The report estimated that more than $5 trillion of CBDCs could be circulating globally by the end of this decade. This would give almost 2 billion people the opportunity to experiment with digital currency.
