The investment banking arm of the Bank of China, BOCI, has successfully issued tokenized securities on the Ethereum blockchain in Hong Kong, as stated in a press release on Monday.
BOCI conducted an issuance of CNH 200 million ($28 million) worth of structured notes, with the renowned Swiss bank UBS underwriting the offering and placing it with clients in the Asia Pacific region. This marks the first instance of a Chinese financial institution issuing tokenized securities on a public blockchain in Hong Kong, according to the press release from BOCI.
Leading banks such as Citigroup and Bank of America have expressed expectations that the tokenization of real-world assets (RWA), which encompasses traditional financial products like bonds and notes, could accelerate the adoption of cryptocurrencies and potentially drive trillions of dollars in value onto blockchain platforms.
The move by BOCI shows Hong Kong’s ambition
Furthermore, this transaction by BOCI highlights Hong Kong’s growing aspirations to become a prominent crypto hub, particularly as the industry faces increasing regulatory scrutiny in the United States.
Notably, shortly after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase for allegedly offering unregistered securities, Hong Kong legislator Johnny Ng extended an invitation to digital asset trading platforms, including Coinbase, to establish a presence in the city.
Ying Wang, Deputy Chief Executive at BOCI, expressed their optimism regarding the progress of Hong Kong’s digital economy and their dedication to promoting the digital transformation and innovative growth of the city’s financial industry. This statement reflects BOCI’s commitment to embracing and driving forward digital advancements in Hong Kong’s financial sector.