BOCI, part of the Bank of China group, has announced tokenized a 200 million yuan ($28 million) note issue on Ethereum in partnership with UBS.
This product is the first of its kind in the Asia-Pacific region and has been made according to the laws of Hong Kong and Switzerland, now introducing regulated securities on the public blockchain.
In December 2022, UBS created a similar initiative valued at $50 million on a permissioned blockchain, conforming to both English and Swiss law. UBS intends to further expand their tokenization services to include structured products, fixed income instruments, and repos.
OSL, a regulated Bitcoin exchange in Hong Kong, raised USD-denominated bonds based on Ethereum in July 2022, which marked a significant step forward for the distribution of tokenized securities in Hong Kong.
Moody’s has also remarked on the potential savings for municipalities issuing bonds on the blockchain along with greater transparency in utilization of funds. Citigroup analysts predicted that the capitalization of these security tokens will hit $4 trillion by 2030.
