Bank of China Investment Bank (BOCI) has made history by becoming the first Chinese financial institution to issue tokenized securities in Hong Kong. In collaboration with UBS, BOCI issued fully digital structured notes worth 200 million offshore renminbi, equivalent to $28 million, on the Ethereum blockchain. This groundbreaking move signifies a significant step forward for the adoption of blockchain technology in the Asia Pacific region.
The tokenized securities issued by BOCI on the Ethereum blockchain are the first of their kind in Asia Pacific and are compliant with both Hong Kong and Swiss law. This development marks a major milestone in the financial industry, as it successfully introduces regulated securities onto a public blockchain, showcasing the potential for increased efficiency, transparency, and security in the issuance and trading of financial instruments.
UBS, as the originator and partner of BOCI in this venture, expressed their enthusiasm for this historic achievement. In a statement, UBS highlighted the significance of the transaction, stating, “This transaction marks the first product of its kind in Asia Pacific constituted under Hong Kong and Swiss law and tokenized on the main Ethereum blockchain.” The bank’s previous experience with tokenized securities includes the issuance of a $50 million tokenized fixed-rate note on a permissioned blockchain under English and Swiss law in December.
The adoption of blockchain technology in the financial sector has gained momentum in recent years, with institutions recognizing its potential to revolutionize traditional processes. By tokenizing securities on the Ethereum blockchain, BOCI and UBS are leveraging the inherent benefits of distributed ledger technology, such as enhanced security, immutability, and increased operational efficiency. This move also paves the way for future innovation and the potential expansion of blockchain-based financial products and services in the region.
BOCI’s successful issuance of tokenized securities in Hong Kong showcases the bank’s commitment to embracing digital innovation and its recognition of the transformative potential of blockchain technology. The utilization of public blockchains, such as Ethereum, underscores the growing acceptance and trust in these networks for securely facilitating financial transactions.
As the financial industry continues to explore the possibilities of blockchain technology, BOCI’s groundbreaking achievement sets a precedent for other institutions in the region to follow suit. The successful integration of tokenized securities on a public blockchain signifies a significant step towards a more efficient, transparent, and inclusive financial ecosystem in Asia Pacific and beyond.
