3

Bank of China issues $28M in digital structured notes on Ethereum blockchain ami...

 1 year ago
source link: https://en.pingwest.com/w/11843
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
neoserver,ios ssh client

Bank of China issues $28M in digital structured notes on Ethereum blockchain amid Hong Kong's Web3 push

Bank of China issues $28M in digital structured notes on Ethereum blockchain amid Hong Kong's Web3 push

12 hours ago

Bank of China, leveraging its global investment division, has achieved a significant milestone by becoming the first mainland financial institution to introduce a tokenised security in Hong Kong. This development aligns with the city's ongoing endeavor to establish itself as a prominent hub for virtual asset trading.

On June 12, BOCI, a division of Bank of China's investment bank, announced the issuing of digital structured notes on the Ethereum blockchain valued at 200 million Chinese yuan ($28 million).

Investment Banking company UBS played a vital role in originating the product and facilitating its placement for clients in the Asia-Pacific region.

While Bank of China's tokenized security issuance was taking place, UBS was also actively involved in expanding its tokenization initiatives across various financial sectors. The firm has been focusing on tokenizing structured products, fixed income instruments, and repo financing. As an example, in December 2022, UBS successfully introduced a tokenized fixed-rate note valued at $50 million. This note was issued under the legal frameworks of both English and Swiss law, and its digitization was implemented on a permissioned blockchain.

A tokenized security refers to a financial asset that is registered and stored on a distributed ledger, as opposed to being recorded through conventional computerized book entries. In this context, the distributed ledger technology, such as blockchain, is utilized to maintain a transparent and immutable record of ownership and transactions related to the security. This innovative approach provides increased security, efficiency, and accessibility compared to traditional methods of record-keeping.

Hong Kong's recent efforts, starting from October of the previous year, to attract virtual asset businesses have sparked speculation that the city could serve as the mainland's entry point into the cryptocurrency market. The Bank of China's initiative is seen as a positive indication of Hong Kong's ambitions in the crypto sphere, according to experts. This development underscores the growing recognition and support for Hong Kong's aspirations to establish itself as a prominent player in the cryptocurrency industry.

SHARE


report

Recommend

About Joyk


Aggregate valuable and interesting links.
Joyk means Joy of geeK