BOCI, the investment banking subsidiary of the Bank of China, has successfully launched tokenized structured notes valued at 200 million offshore renminbi ($28 million) on the Ethereum blockchain.
This marks the bank’s inaugural attempt at issuing a tokenized security in Hong Kong and also sets a precedent as the first Chinese financial institution to take such a step.
Major banks like Citigroup and Bank of America have predicted that the tokenization of real-world assets (RWA) – an umbrella term for traditional financial products such as notes and bonds can boost crypto adoption and drive trillions of dollars in value to blockchains.
In a recent Statement, Ying Wang, BOCI’s Deputy CEO said, “In cooperation with UBS, we’re streamlining digital asset markets and products for Asia-Pacific customers by developing blockchain-based digital structured products specifically tailored for this region’s customers. We’re inspired by Hong Kong’s evolving digital economy and are dedicated to fostering the digital transformation and innovative growth of its financial industry.”
We are pleased to work with BOCI on this transaction to bring structured products onto a public blockchain network, supporting our APAC clients’ increasing interest in fully regulated digital asset products,” said Aurelian Troendle, the Global Head of MTN Trading at UBS. “Blockchain technology can tremendously enhance efficiency in high-frequency issuance activities, ultimately resulting in benefits for investors.”
This milestone achieved by BOCI and UBS signals a new era of digital securities, paving the way for further innovations in the field