The Bank of China Investment (BOCI) bank, in partnership with US Bancorp (USB), issued CNH 200 million ($28 million) fully digital structured notes on the Ethereum network on Monday. With the issuance, BOCI became the first Chinese bank to issue a tokenized security in Hong Kong.
BOCI stated in a press release that the issuance was the first step in its long-term collaboration with the USB. The US-based bank issued a $50 million tokenized fixed rate note in December 2022 on a permisioned blockchain under English and Swiss law.
“By issuing these digital securities, both BOCI and USB have taken new steps in terms of applicable law and blockchain types. This transaction marks the first product of its kind in the Asia Pacific constituted under Hong Kong and Swiss law and tokenized on the main Ethereum blockchain, successfully introducing regulated securities onto a public blockchain,” the press release stated.
Hong Kong, the New Crypto Hub?
In the press release, the Deputy CEO of BOCI, Ying Wang, lauded the evolution seen in Hong Kong’s digital market. Furthermore, he noted that BOCI would continue to promote the innovation and development of Hong Kong’s financial industry.
Although one of the smallest countries in Asia, Hong Kong has risen to global financial recognition. The country’s acceptance of digital assets amidst the regulatory crackdown in the US has placed it at the center of innovation.
Hong Kong recently rolled out a clear regulatory framework for digital assets and is the first country to classify digital assets as property.
Path to Crypto Acceptance?
China is showing all the signs it will soon accept cryptocurrencies. The country recently released a web3 innovation and development whitepaper in Beijing last month. Residents of China were also left optimistic after a major news outlet, China Central Television, displayed a Bitcoin logo in one of its programs.
China’s crypto acceptance would cushion the growing tension around cryptocurrencies following the fallout between the US Securities and Exchange Commission (SEC) and exchanges in America. However, it would move crypto from the West to the East.
