Bank of China’s Investment Arm Issues Tokenized Securities on Ethereum in Hong Kong, Highlighting the Region’s Ambition as a Crypto Hub

The Bank of China’s investment banking arm, BOCI, has issued tokenized securities on the Ethereum blockchain in Hong Kong, marking the first time a Chinese financial institution has done so on a public blockchain in the region. BOCI released CNH 200 million ($28 million) of structured notes, with UBS serving as the underwriter and placing the securities with clients in the Asia Pacific region. The move is seen as a significant step toward the tokenization of traditional financial products, which experts believe could drive crypto adoption and bring trillions of dollars in value to blockchain platforms.

This transaction by BOCI highlights Hong Kong’s growing ambition to become a prominent hub for the crypto industry, particularly as regulatory pressure in the United States mounts. Following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase for offering unregistered securities, Hong Kong legislator Johnny Ng invited digital asset trading platforms, including Coinbase, to establish operations in the city. BOCI’s deputy chief executive, Ying Wang, expressed their commitment to promoting Hong Kong’s financial industry’s digital transformation and innovative development in light of the evolving digital economy.