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BOCI and UBS Launch First Tokenized Security on Ethereum Blockchain in Hong Kong

In collaboration with UBS, BOCI became the inaugural Chinese financial institution to issue a tokenized security in Hong Kong, using the Ethereum platform.

BOCI, the investment banking subsidiary of Bank of China, has issued completely digitized structured notes valued at 200 million offshore renminbi ($28 million) on the Ethereum blockchain. This positions it as the first Chinese banking entity to distribute a tokenized security in Hong Kong.

The issuance marks the premier product of this type in the Asia Pacific region, drafted under the Hong Kong and Swiss legislation and tokenized on the primary Ethereum blockchain. It successfully introduces regulated securities onto a public blockchain, according to a statement from UBS, the originator and BOCI's collaborator.

This follows UBS's issuance of a $50 million tokenized fixed-rate note on a permissioned blockchain under English and Swiss law in December.

Digital Evolution in Hong Kong
"Through the creation of blockchain-based digital structured products, we aim to streamline the digital asset markets and products for our Asia Pacific customers," expressed Ying Wang, Deputy CEO at BOCI. "We are inspired by the evolution of Hong Kong's digital economy and remain dedicated to fostering the digital shift and innovative growth of the city's financial industry.”

This advancement occurs in the midst of increased activity in Hong Kong, following the release of new regulations for the crypto sector on June 1. Earlier this month, First Digital announced its intention to launch a new stablecoin pegged to the U.S. dollar, yet regulated in Asia.

Speculation surrounding China's crypto plans has grown, following its release of a white paper on web3 innovation and development the previous month. Binance CEO Changpeng "CZ" Zhao reported a heightened interest from the Chinese-speaking communities after state-run China Central Television aired a segment about cryptocurrencies, notably featuring the Bitcoin logo.

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