In a significant development last week, Bank of China International Holdings (BOCI), based in Hong Kong, made an important move by issuing fully digital structured notes valued at 200 million yuan which equals US$28 million. These notes were created as tokens and were stored on the Ethereum blockchain. BOCI partnered with a renowned investment bank to complete this achievement. UBS not only designed the product but also provided it to its clients in the Asia-Pacific area.

Hong Kong Promotes Blockchain Adoption With UBS and BOCI’s Blockchain-Based Structured Note

Hong Kong has taken an important step forward to promote blockchain technology with the recent announcement of a blockchain-based structured note jointly launched by UBS and BOCI, the investment arm of China in Hong Kong. This development represents the placement of a private security product on a public blockchain, since the adoption of the city’s new cryptocurrency licensing system. The structured note offering followed the introduction of a government-based green bond in February, which made use of a Goldman Sachs-provided private blockchain. These programs show the rising desire to expand Hong Kong’s web3 sector beyond cryptocurrencies.

Allen Huang, associate dean at the Hong Kong University of Science and Technology (HKUST), emphasized the importance of this development. He adds that this issuance on a public blockchain strengthens Hong Kong’s reputation as a centre for modern financial technology. To make itself a hub for the cryptocurrency industry, Hong Kong implemented new regulations on virtual assets this month.

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These regulations require exchange licensing and restrict retail investors from purchasing tokens with high value such as Bitcoin and Ether. However, it is important to note that the city’s description of such assets doesn’t include securities or forward contracts. Moreover, investors are now getting an idea of how the city’s blockchain-based securities will function.

BOCI Launches Customer-Focused Blockchain Device in Asia-Pacific, UBS Offers Fiat Purchase Option

Ying Wnag, the deputy CEO at BOCI, has stated that this device has been created for customers in the Asia-Pacific. A spokeswoman of UBS stated that customers of the Swiss Bank can use fiat money to purchase the product held in the Swiss Bank. Jack Poon has suggested that this new project can be considered as BOCI’s continued blockchain initiative. Furthermore, he has also mentioned that the tokenized green bond issue by HKMA included the state-owned bank BOC.