Bank of China’s investment division, BOCI, has taken a significant stride in the FinTech realm by launching the first-ever tokenised security in APAC.
This feat was achieved using the main Ethereum blockchain, marking a novel approach to dealing with regulated securities on a public blockchain. BOCI rolled out CNH 200m fully digital structured notes, originated by UBS and sold to its Asia Pacific clients.
This milestone was made possible through a collaboration with UBS, which had previously issued a $50m tokenised fixed rate note in December. The UBS note was digitised on a permissioned blockchain under English and Swiss law. This recent venture is the first of its kind in Asia Pacific, constituted under Hong Kong and Swiss law, and tokenised on the Ethereum blockchain.
Ying Wang, deputy CEO at BOCI, lauded the collaborative efforts with UBS. He stressed that the aim was to simplify digital asset markets and products for Asia Pacific customers, thereby leading the development of blockchain-based digital structured products specifically tailored for the said region.
Aurelian Troendle, global head of MTN Trading at UBS, also underscored the benefits of using blockchain technology. He stated that high-frequency issuance activities could harness massive efficiency gains via blockchain, resulting in advantages for investors.
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’s global head of MTN Trading, Aurelian Troendle, added, “High-frequency issuance activity can benefit from vast efficiency gains through the use of blockchain technology, which will ultimately bring advantages to investors.”
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