Hong Kong and Swiss law govern the tokens that are backed by securities.
BOCI, the investment bank unit of Bank of China, issued 200 million Chinese yuan ($28 million) in Ethereum blockchain-minted digital structured notes on June 12. BOCI becomes Hong Kong’s first Chinese financial institution to tokenize securities. UBS originated the product for its Asia-Pacific client. BOCI vice CEO Ying Wang said:
“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.”
UBS is tokenizing structured products, fixed income, and repo financing simultaneously. A permissioned blockchain released a $50 million tokenized fixed-rate note in December 2022 under English and Swiss law.
Hong Kong opened crypto exchanges to retail users on June 1, Cointelegraph reported. Two weeks later, Hong Kong’s undersecretary for financial services and the treasury, Joseph Chan Ho-lim, said the special administrative region is “actively participating” in the blockchain industry and aims to establish a stablecoin regulation framework within a year.
On February 16, Hong Kong released a HK$800 million green bond tokenized on Goldman Sachs’ GS DAP protocol with a 4.05% annual yield. Before launching two bitcoin futures exchange-traded funds in December 2022, Hong Kong raised almost $70 million.