Chinese bank BOCI has achieved a significant milestone by becoming the first bank in China to issue tokenized securities on the Ethereum blockchain. In collaboration with UBS, BOCI has successfully issued CNH 200 million worth of fully digital structured notes to its clients in Hong Kong.
This groundbreaking move comes at a time when the digital asset industry is witnessing notable developments worldwide. While US regulators have been intensifying their enforcement actions against major crypto exchanges in the country, China has taken a significant leap forward in embracing blockchain technology.
The tokenized security offering from BOCI, developed in partnership with UBS, marks a major achievement for the Chinese banking sector. Leveraging the Ethereum blockchain, this issuance demonstrates the banks’ commitment to exploring innovative avenues and staying at the forefront of technological advancements.
The success of the UBS project has extended to the Asian Pacific region, with the collaboration between the two parties catering to Chinese clients. Notably, UBS had previously issued a USD 50 million tokenized fixed-rate note in 2022, anticipating the current developments with BOCI and its Chinese customer base.
UBS emphasized the legal and technological significance of the issuance in a press release, stating, “By issuing these digital securities, both BOCI and UBS have taken new steps in terms of applicable law and blockchain types.” The transaction is considered the first of its kind in the Asia Pacific region, established under Hong Kong and Swiss law, as highlighted in the press release.
The Deputy CEO of BOCI, Ms Ying Wang, expressed enthusiasm regarding this groundbreaking development, stating, “Working together with UBS, we are driving the simplification of digital asset markets and products.” She further emphasized their commitment to fostering the digital transformation and innovative growth of Hong Kong’s financial industry.
The issuance of tokenized securities by BOCI represents a significant milestone not only for the bank but also for China’s financial landscape. This move showcases the country’s increasing interest in leveraging blockchain technology to revolutionize traditional financial systems and pave the way for further innovation in the digital economy.