In the cryptocurrency market, Bitcoin occupies a dominant position. In fact, when ‘crypto money’ is mentioned, the first thing that comes to mind is Bitcoin. However, BOCI chose not Bitcoin in Hong Kong, but its rival Ethereum, which is trying to dethrone it.
Bitcoin is on the sidelines! Bank of China chose Erthereum
Bank of China’s investment banking arm, BOCI, has issued tokenized securities on Ethereum in Hong Kong, according to a press release on Monday. According to the company, this is the first transaction in Hong Kong by a Chinese financial institution. BOCI issued CNH 200 million ($28 million) of structured securities. Swiss banking giant UBS will deliver these securities to customers in Asia Pacific. The BOCI press release stated that this is the first time a Chinese financial institution has issued tokenized securities on a public blockchain in Hong Kong.
BOCI Deputy General Manager Ying Wang made a statement on the subject. “We are encouraged by the evolution of Hong Kong’s digital economy. Therefore, we are committed to promoting the digital transformation and innovative development of Hong Kong’s financial sector.”
This revolutionary development represents an important step in the adoption of decentralized finance. It also highlights Hong Kong’s efforts to attract major players in the crypto industry, including Coinbase. This decision by BOCI is bold proof that the institution recognizes the enormous potential of Blockchain technology. With this development, the People’s Bank of China paves the way for both institutional and individual investors to access traditional financial assets with newly discovered convenience and flexibility.
Hong Kong aims to become crypto attraction
Meanwhile, major banks like Citigroup and Bank of America predict that tokenization of real-world assets (RWA), an umbrella term for traditional financial products like bonds and bonds, could boost crypto adoption and add trillions of dollars in value to Blockchain.
The crypto industry is facing increasing regulatory pressure in the United States. As you follow on Kriptokoin.com, the US Securities and Exchange Commission (SEC) has sued Coinbase. The SEC accused Coinbase of selling unregistered securities. BOCI’s decision came just days after the SEC filed a lawsuit. Meanwhile, Hong Kong legislator Johnny Ng has invited digital asset trading platforms, including Coinbase, to open in Hong Kong. These developments also underscore Hong Kong’s growing ambition as a major hub for crypto.
This move by BOCI is likely to inspire other institutions to explore the benefits of blockchain and crypto as well. Thus, it is likely to open a door for it to encourage more innovation. It is also possible to be an incentive for it to nurture a more inclusive and efficient financial ecosystem.
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