Unique: Large Chinese bank chooses Ethereum for digital asset issuance

The investment arm of China’s fourth largest bank, BOCI, has issued $28 million in digital debt on the Ethereum (ETH) blockchain. It is the first time that a Chinese financial institution has issued such a financial product in Hong Kong. UBS, which is a partner of BOCI, announced this in a press statement.

200 million renminbi on Ethereum

The press statement states that the bank has issued 200 million renminbi worth of debt securities, which is worth approximately $28 million, on Ethereum. These are so-called fully structured notes. This is a kind of debt paper that consists of several parts.

“With the issuance of these digital securities, both BOCI and UBS have taken new steps in terms of applicable law and blockchain types. This transaction marks the first product of its kind in Asia Pacific, incorporated under the law of Hong Kong and Switzerland and tokenized on the Ethereum blockchain.”

According to the press statement. BOCI CEO Ying Wang said he is pleased that the bank is at the forefront of digital financial innovation:

“BOCI is thrilled to be at the forefront of innovation in technology finance and digital finance,”

A good development for ETH?

BOCI’s move is good Ethereum news. The network sees an increase in adoption from the traditional financial angle. It further substantiates how Ethereum is part of a possible financial revolution.

It is not unique, by the way. Closer to home, the European Investment Bank has already used Ethereum for bonds. At that time it was about 56 million euros. Ethereum serves as the basis for this due to the immutable nature of data on the Ethereum blockchain, just like in the example above.

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Hong Kong, where the debt is issued, appears to be in a race to become the crypto hub of the world. Recently, legislation came into effect that allows crypto companies to officially operate in the country.

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