- The product was developed by UBS Technologies
- These positions are settled in CNH
- Bonds available to investors in Hong Kong
Financial counterparty BOCI, which is part of the Bank of China group, issued tokenized assets. These are $28 million CNH (offshore yuan) digital bonds minted on the Ethereum network.
In fact, this is the first financial counterparty in China to issue tokenized derivatives for its clients. The product was developed by UBS, which reported about the successful completion of the project.
“We are thrilled to be working with BOCI on this initiative to bring structured products to the public blockchain network while supporting the growing interest of our APAC (Asia Pacific) customers” — Aurelian Troendl, Global Head of MTN Trading at UBS AG.
This is not the first exchange product developed by UBS. Prior to this, the company issued a structured tokenized bond with a fixed rate in the amount of $50 million.
The product was released on the basis of an exclusive blockchain (permissioned blockchain) in accordance with the laws of the UK and Switzerland.
Judging by the press release, the bonds are available to Bank of China customers in Hong Kong. Recall that from June 1, the licensing regime for VASPs (virtual asset service providers) came into force here. Local authorities are actively inviting large contractors, promising them assistance. However, before that, it was stated here that the requirements for companies would be quite stringent.