By
Josh O'Sullivan
April 30th, 2024
The move represents the first attempt by any Chinese financial institution to issue a tokenized security in Hong Kong.
Bank of China Investment (BOCI) has issued 200 million Chinese yuan ($28 million) worth of digital structured notes. Minted on the Ethereum blockchain, The move represents the first attempt by any Chinese financial institution to issue a tokenized security in Hong Kong, albeit on a public blockchain.
According to a June 12 press release, BOCI had the help of Swiss banking giant UBS in the issuance and placement of tokenized securities to its client in the Asia-Pacific region.
Chinese Investment Bank BOCI Goes Big on Crypto Adoption
As is well known, tokenization of real-world assets (RWA), which includes notes and bonds, has the potential to bolster global crypto adoption in ways that can only be imagined. Top banks like Citigroup and Bank of America also share this view about tokenization. They predicted its ability to help drive massive amounts of value to the blockchain.
In line with this view, the latest move by BOCI might be a bold statement on the part of Hong Kong which has recently been taking steps to become the global crypto hub.
Recall that there has been increased scrutiny of the crypto industry in the United States lately. That is with the US Securities and Exchange Commission (SEC) going after crypto giants Binance and Coinbase in separate lawsuits. Interestingly, Hong Kong legislator Johnny Ng has seized the opportunity to invite digital asset trading platforms including Coinbase to the city.
On June 1, Hong Kong also opened crypto exchange access to retail users. And on many occasions, the administration of Hong Kong has confirmed its ‘active participation’ in the blockchain industry. That is not to mention that the city is also seeking to establish a robust stablecoin regulation within a year.
About four months ago, Hong Kong issued an HK$800 million green bond tokenized on Goldman Sachs’ tokenization protocol GS DAP. The city also launched two exchange-traded funds (ETFs) for crypto futures in December 2022, raising over $70 million before the launch.
