Bank of China Subsidiary Issues Security Tokens (Digital Securities) in Hong Kong ─ UBS Forms and Underwrites | CoinDesk JAPAN | CoinDesk Japan

Bank of China International (BOCI), a subsidiary of the Bank of China (one of China’s four largest commercial banks) and an investment bank, has issued securities tokenized on the Ethereum blockchain, so-called security tokens (digital securities), in Hong Kong. Swiss financial giant UBS made the announcement in a press release on June 12.

BOCI issued 200 million offshore RMB (approximately $28 million, approximately ¥3.92 billion) structured notes, originated by UBS and sold to clients in the Asia-Pacific region.

It is the first time a Chinese financial institution has issued tokenized securities in Hong Kong, according to a press release.

Major banks such as Citigroup and Bank of America believe that the tokenization of “Real World Asset (RWA)”, a generic term for traditional financial instruments such as bills and bonds, will promote the spread of crypto assets. , predicts it could bring trillions of dollars of value to blockchain.

The BOCI initiative also highlights Hong Kong’s growing ambition to become a “crypto hub” as the crypto industry faces more regulatory pressure in the United States. In fact, days after the US Securities and Exchange Commission (SEC) sued Binance and Coinbase, a Hong Kong lawmaker called on Coinbase and other cryptocurrency exchanges to expand into Hong Kong.

“We are encouraged by the evolution of Hong Kong’s digital economy and are committed to promoting the digital transformation (DX) and innovative development of Hong Kong’s financial industry,” BOCI Deputy CEO Ying Wang said in a release. rice field.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Hong Kong skyscrapers (Unsplash)
｜Original: Bank of China’s BOCI Issues Tokenized Securities on Ethereum in Hong Kong