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  • 🇨🇳 🇭🇰 China Has Entered the Chat: BOCI’s Tokenized Structured Note

🇨🇳 🇭🇰 China Has Entered the Chat: BOCI’s Tokenized Structured Note

🪨 BlackRock is Betting on Bitcoin: Their Spot ETF Filing

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早上好, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 🇨🇳 🇭🇰 China Has Entered the Chat: BOCI’s Tokenized Structured Note

2️⃣ 🪨 BlackRock is Betting on Bitcoin: Their Spot ETF Filing

Without further ado, it's time to…

Get Liquid 💧


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Can’t wait? Check out their latest updates on the all new State of Security Tokens 2023 - Q1 Extended report on page 33! From Hamilton Lane to NovaWulf to USDF, there’s plenty that they’re doing from multiple angles.

🇨🇳 🇭🇰 China Has Entered the Chat: BOCI’s Tokenized Structured Note

我今天想告诉你们中银国际的 tokenized structured note. 只是中国的第一 tokenized issuance.

Okay if this was 7 years ago I’d write this section in Chinese but that’s all the broken Chinese I have for you… so you’re in luck!

Bank of China International (BOCI) is Bank of China’s investment banking subsidiary in Hong Kong (hence why there’s 2 emojis in this section’s title). BOCI is a leading Chinese issuer with a full-suite of services and they worked with UBS Tokenize to, you guessed it, tokenize a structured note on Ethereum! This is the first time a Chinese financial institution has issued a tokenized security on a public blockchain in Hong Kong according to their press release.

So what are the details? There aren’t too many except the following:

  • Size: CNH 200M ($28M)

  • Underwriter: UBS

  • Jurisdiction: Hong Kong and Swiss Law

  • Available to: Clients in Asia Pacific (APAC) region

I wish we had more details on the terms of the structured note but this will have to do for now. Regardless, this is a big step for Hong Kong as it continues its ambition to being an innovation/crypto hub.

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.

We are encouraged by the evolution of Hong Kong’s digital economy and are committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry.

Ying Wang, Deputy CEO at BOCI

Other recent hints at this?

Just a couple weeks ago Hong Kong lawmaker Johnny Ng invited Coinbase to apply to operate in the region.

This past week crypto exchange Jeritex announced a strategic partnership with Hong Kong’s Seas Young Limited to tokenize stocks and real estate. More on this in my Market Update section of the Security Token Show this week - should be out in a couple hours, check our YouTube channel!

Looks like a lot more exciting news is coming from China on tokenized real world assets, can’t wait to cover it all for you! 再见👋

🪨 BlackRock is Betting on Bitcoin: Their Spot ETF Filing

The world's biggest asset manager, last Thursday filed for what people are calling the Blackrock Bitcoin ETF. The SEC has yet to approve any applications for spot bitcoin ETFs, however it’s important to note that this is actually a trust structure which the filing clearly states “The Trust is not an investment company registered under the Investment Company Act of 1940.”

The bitcoin trust would allow investors to get exposure to the cryptocurrency, as the asset class comes under intense regulatory scrutiny, without buying it directly and allows for continuous issuance and redemptions.

Who else is involved?

BlackRock's iShares Bitcoin Trust will use Coinbase Custody as its custodian for the bitcoin, according to a filing with the U.S. Securities and Exchange Commission, and will use BNY Mellon as its cash custodian.

The move comes at a time when the global cryptocurrency industry has been caught in the crosshairs of the U.S. securities regulator on alleged violations of securities laws.

Earlier this month, the regulator sued major exchanges Coinbase and Binance in high-profile lawsuits that reverberated through the digital assets industry. However as it relates to the Blackrock news, let’s remember the lawsuit is alleging Coinbase is operating as an unregistered broker which has nothing to do with their custody business as the Coinbase Custody Trust company is in fact a qualified custodian.

With all this said, if BlackRock gets approved it’ll be great news for asset managers all over AND potentially even for Grayscale Bitcoin Trust investors as GBTC doesn’t currently offer redemption (a much requested feature).

💦 What else is Drippin’

The wait is over: The Security Token Advisors State of Security Tokens 2023 - Q1 Extended report is brought to you by Provenance Blockchain Foundation!

Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols. This piece will detail the macro trends taking shape within the tokenization space as a function of service providers like transfer agents, broker-dealers, alternative trading systems, custodians, and third-parties, as well as issuers, blockchain foundations, asset managers, investment banks, and activity that Security Token Advisors sees on its advisory side

Take a read for analysis on common themes emerging for both primary and secondary markets! 👇

This is not financial or investment advice.

Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.