This development marks the first instance of a Chinese financial establishment issuing a tokenized security in Hong Kong.
It is worth noting that the issuance was conducted in collaboration with investment banking firm UBS. Based on the announcement shared on June 12th, USB helped to create the product and "placed <it> to its clients in Asia Pacific."
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Ying Wang, the deputy CEO of BOCI, expressed the initiative's objective by saying:
Working together with UBS, we are driving the simplification of digital asset markets and products for customers in Asia Pacific through the development of blockchain-based digital structured products designed specifically for customers in Asia Pacific.
China's special administrative region Hong Kong has been actively working toward making the area a crypto hub. On June 1st, regulators in Hong Kong allowed crypto exchanges to offer services for retail users.
Thus, following the escalating regulatory scrutiny in the US, a Legislative Council member, Johnny Ng, invited crypto exchanges to join the administrative region, citing support for "all global virtual asset trading operators."
Later on, Joseph Chan Ho-lim, the under-secretary for financial services and the treasury for the Hong Kong government, revealed that Hong Kong is "actively participating" in the blockchain industry. Chan Ho-lim added that plans are underway to set up a stablecoin regulation framework within a year.