The Bank of China’s investment banking arm, BOCI, has issued a tokenised security on the main Ethereum blockchain in Hong Kong.
BOCI issued CNH 200 million in fully digital structured notes, originated by UBS and placed with clients across the Asia Pacific region. Previously, UBS had issued a $50 million tokenised fixed-rate note in December under English and Swiss law, which was digitised on a permissioned blockchain.
This latest transaction marks a significant milestone as the first product of its kind in the Asia Pacific, constituted under Hong Kong and Swiss law and tokenised on the main Ethereum blockchain, successfully introducing regulated securities to a public blockchain.
Ying Wang, deputy CEO of BOCI, stated, “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 this region.”
Aurelian Troendle, global head of MTN Trading at UBS, commented, “High-frequency issuance activity can achieve significant efficiency gains through blockchain technology, ultimately benefiting investors.”