RMB 20 billion digital structured bond issuance
BOCI, an investment bank owned by Bank of China, announced on the 12th that it has successfully issued a 200 million yuan (approximately 4 billion yen) digital structured bond. It became the first Chinese financial institution to issue tokenized securities in Hong Kong.
The structured notes were underwritten by Switzerland’s largest bank UBS and sold to clients in the Asia-Pacific region, marking the beginning of a long-term collaboration between BOCI and UBS in the digital structured notes space.
According to a statement from UBS, the deal was structured under Hong Kong and Swiss law and offered as the first product in the Asia-Pacific region to be tokenized on the Ethereum blockchain. Last December, UBS issued 7 billion yen worth ($50 million) of tokenized fixed-income bonds on a permissioned blockchain under British and Swiss law.
Ying Wang, Deputy CEO of BOCI, said the bank is pleased to be at the forefront of innovation in technology and digital finance.
Together with UBS, we will promote the simplification of digital asset markets and products for customers in the region through the development of blockchain-based digital products specifically designed for them. Encouraged by the evolution of Hong Kong’s digital economy, he is committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry.
Hong Kong aims to become a cryptocurrency hub
Last year, the Hong Kong government made a major shift in the direction of supporting the crypto-asset (virtual currency) industry. He announced plans to improve the situation.
Treasury Secretary Paul Chan said in January that Hong Kong aims to become a regional cryptocurrency hub. Since then, he has shown a strong desire to support the development of Web3, and has actively provided support, such as allocating a large budget to maintain a stable environment.
In addition, in Hong Kong, where new virtual currency regulations began to be enforced this month, and virtual currency trading was permitted even for individual investors, the movement of related companies is becoming active.
connection:Hong Kong to enforce new rules for virtual currency exchanges from June
Chinese state-owned company Greenland is also reportedly planning to apply for a license to operate a cryptocurrency trading business in Hong Kong. The chief executive of the company’s wholly-owned subsidiary, Greenland Financial Technology Group, said, “We want to expand our digital financial business with Hong Kong as the gateway to the world.”
connection:Chinese state-owned company Greenland aims to offer cryptocurrency services in Hong Kong
Hong Kong’s largest virtual bank, ZA Bank, announced last month that it would offer a cryptocurrency trading service for individual investors. In addition, major virtual currency exchange Huobi announced at the end of last month that it will join the virtual asset consortium “HKVAC”, a new organization in Hong Kong, and support the business environment of Web3 in Hong Kong. He said that he will create a large-scale investment environment.
connection:Huobi joins new local organization to make Hong Kong the world’s largest cryptocurrency market
In May, Ripple announced that it would participate in the Hong Kong Monetary Authority (HKMA)’s “e-HKD Pilot Program” together with Taiwan’s Fubon Bank, and develop a use case to realize the tokenization of real estate assets. As part of its pilot program, the company will leverage its CBDC platform and a private version of the XRP Ledger (XRPL) to provide real estate asset tokenization capabilities. This will enable the issuance and distribution of e-HKD and real estate tokens, as well as lending functions.
connection:Ripple Participates in Hong Kong’s CBDC Pilot Program and Pursues the Potential of Tokenizing Real Estate Assets
Hong Kong custody firm First Digital announced today the launch of a US dollar stablecoin, First Digital USD (FDUSD). While building a cooperative relationship with the Hong Kong regulatory authority, it is said that global expansion is also in sight.
According to the Hong Kong Securities and Futures Commission (SFC) regulations, the use of stablecoins by individual investors is not permitted until stablecoin regulations are in place by 2024.
connection:Hong Kong Custody Firm to Launch FDUSD Stablecoin on BNB Chain