The Bank of China’s investment banking arm, BOCI, has issued a tokenised security on the main Ethereum blockchain in Hong Kong.
BOCI issued CNH 200 million fully digital structured notes, originated by UBS and placed to its clients in Asia Pacific.
UBS had previously issued a $50 million tokenised fixed rate note in December under English and Swiss law, digitised on a permissioned blockchain.
The latest transaction marks the first product of its kind in Asia Pacific constituted under Hong Kong and Swiss law and tokenised on the main Ethereum blockchain, successfully introducing regulated securities onto a public blockchain.
Ying Wang, deputy CEO, BOCI, says: "Working together with UBS, we are driving the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products, designed specifically for customers in Asia Pacific."
Aurelian Troendle, global head, MTN Trading, UBS, adds: "High-frequency issuance activity can benefit from vast efficiency gains through the use of blockchain technology, which will ultimately bring advantages to investors."