• Bank of China’s subsidiary, BOCI has issued CNH 200 million ($28 million) in digital structure notes minted on the Ethereum blockchain.
• Investment banking company UBS originated the products and was allocated to its clients around the Asia-pacific region.
• This milestone indicates an ongoing partnership between BOCI and UBS to explore further transactions including for third parties and promote digital transformation in Hong Kong’s financial industry.
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. The bank has issued CNH 200 million ($28 million) in digital structure notes minted on the Ethereum blockchain.
Investment Banking Company UBS Originated the Products
The products were originated by Investment banking company UBS and was allocated to its clients around the Asia-pacific region. It can be recalled that UBS issued $50 million in tokenized fixed-rate notes under English and Swiss law back in December 2022 with a tenor of six months which was also tokenized on an Ethereum-based blockchain.
UBS Seeking for Further Transactions
UBS explained that it is seeking for further transactions including for third parties due to increasing demand for fixed-income investment among Asian investors. The inaugural senior unsecured digital bond of UBS was priced back in November 2022 comprising $404 million in three-year digital bonds.
Ongoing Partnership Between BOCI & UBS
This milestone is indicating an ongoing partnership between BOCI and UBS as they have committed themselves to promoting digital transformation and innovative development of Hong Kong’s financial industry through this transaction. Deputy CEO at BOCI Ms Ying Wang commented on this saying “BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance“.
Promoting Digital Transformation In Hong Kong’s Financial Industry
Both entities are heavily focused on promoting digital transformation within Hong Kong’s financial industry with plans for more such deals going forward. This move will help them keep up with growing demand from Asian investors as well as promote further development within their respective sectors moving forward .