• Bank of China’s subsidiary, BOCI, has issued CNH 200 million ($28 million) in digital structure notes minted on the Ethereum blockchain.
• UBS originated the products and it was allocated to its clients around the Asia-pacific region.
• BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance, working together with UBS to drive simplification of digital asset markets and products for customers in Asia Pacific.
Bank of China Issues $28M in Digital Structured Notes
Bank of China’s subsidiary, BOCI has made history by becoming the first Chinese financial institution to issue tokenized security in Hong Kong. It issued CNH 200 million ($28 million) in digital structured notes minted on the Ethereum blockchain. Investment banking company UBS originated these products which were allocated to its clients around the Asia-Pacific region.
UBS Explores Further Transaction Options
UBS had earlier issued $50 million in tokenized fixed-rate notes under both English and Swiss law with a tenor of six months tokenized on an Ethereum-based blockchain. This was meant to meet the rising demand for fixed-income investment among Asian investors. The bank also stated that it would explore further transactions including for third parties while maintaining the growing digital security deals. In November 2022, UBS also priced its inaugural senior unsecured digital bond comprising $404 million in three-year digital bonds.
Ms Ying Wang’s Comments
Ms Ying Wang, Deputy CEO at BOCI commented on this milestone: “BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance” She added that they are “driving simplification of digital asset markets and products for customers in Asia Pacific through development of blockchain based digital structured products designed specifically for customers in Asia Pacific.“ She concluded by saying they are „committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry.“
BOCI & UBS Working Together
The transaction between BOCI & UBS marks a significant milestone as it is first such deal done within Asia Pacific region indicating an ongoing partnership between both entities who have started exploring applicable laws & blockchain types for further transactions including those involving 3rd parties apart from their own clients.
This groundbreaking initiative by Bank Of China’s subsidiary BOCI & Investment Banking Company US shows how traditional financial institutions are trying hard to meet up with modern technologies like Blockchain & Cryptocurrency paving way into future where such forms will become more common than ever before!