• Bank of China’s investment bank subsidiary BOCI announced the issuance of 200 million Chinese yuan ($28 million) worth of digital structured notes minted on the Ethereum blockchain.
• UBS helped originate the product for placement to its client in the Asia-Pacific region.
• Hong Kong issued an HK$800 million green bond tokenized on Goldman Sachs’ tokenization protocol GS DAP with an annual yield of 4.05%.
Bank of China Issues Digital Structured Notes
Bank of China’s investment bank subsidiary BOCI recently announced the issuance of 200 million Chinese yuan ($28 million) worth of digital structured notes, minted on the Ethereum blockchain. This makes them the first Chinese financial institution to issue a tokenized security in Hong Kong. Investment banking company UBS helped originate and place this product to their clients in the Asia-Pacific region.
UBS Expands Tokenization
UBS has been expanding their use and development around tokenization across structured products, fixed income and repo financing. In December 2022, they issued a $50 million tokenized fixed-rate note governed by English and Swiss law, digitized on a permissioned blockchain.
Hong Kong Introduces Crypto Regulations
On June 1, Hong Kong opened crypto exchange access for retail users and two weeks later Joseph Chan Ho-lim, under secretary for financial services and treasury stated that Hong Kong is actively participating in developing frameworks for stablecoin regulation within one year. In February 2021, Hong Kong issued an HK$800 million green bond tokenized on Goldman Sachs’ tokenization protocol GS DAP with an annual yield of 4.05%. Finally, last December they introduced two exchange-traded funds (ETFs) for cryptocurrency futures raising over $70 million prior to launch.
Metaverse Investments: Opportunities & Risks
In addition to all these developments surrounding cryptocurrency regulation in Hong Kong, they are also exploring opportunities related to metaverse investments along with associated risks due to their trillion dollar virtual reality market potential as well as other applications like gaming or streaming services where users can purchase assets using virtual currency earned while playing games online.
Binance Humiliated by SEC Lawsuit
Finally it should be mentioned that recently Coinbase stock plunged 20% after being sued by the Securities and Exchange Commission (SEC) which also resulted in Binance being publicly humiliated due to not following proper regulations when listing new tokens for trading on their platform which allowed traders from US states access without having any type of license required by US law enforcement agencies such as FinCEN or FINRA etc…