21 June 2023
Technology
Linklaters advises on the first tokenised structured notes on a public blockchain in Hong Kong SAR
Linklaters has advised on the Hong Kong law aspect of the successful issuance of RMB200m (approximately US$28m) fully digital structured notes issued by Bank of China International Holdings (BOCI). Acting as the dealer and blockchain administration agent, UBS placed the digital structured notes to its clients in the Asia Pacific.
These digital securities are tokenised on the Ethereum platform, thereby successfully introducing regulated securities in Hong Kong SAR onto a public blockchain. This is also the first product of its kind in the region constituted under Hong Kong and Swiss law.
This transaction not only marks BOCI as the first Chinese financial institution to issue a tokenised security in Hong Kong SAR, but also signifies another step towards the wider development of the city as a virtual asset trading hub.
The Linklaters team was led by capital markets partners Chin-Chong Liew and Jonathan Horan. Philip Spoerlé of Niederer Kraft Frey advised on the Swiss law aspect of this issuance.
Linklaters’ Asia Head of Structured Finance and Derivatives Chin-Chong Liew commented:
These digital securities are tokenised on the Ethereum platform, thereby successfully introducing regulated securities in Hong Kong SAR onto a public blockchain. This is also the first product of its kind in the region constituted under Hong Kong and Swiss law.
This transaction not only marks BOCI as the first Chinese financial institution to issue a tokenised security in Hong Kong SAR, but also signifies another step towards the wider development of the city as a virtual asset trading hub.
The Linklaters team was led by capital markets partners Chin-Chong Liew and Jonathan Horan. Philip Spoerlé of Niederer Kraft Frey advised on the Swiss law aspect of this issuance.
Linklaters’ Asia Head of Structured Finance and Derivatives Chin-Chong Liew commented:
“Linklaters has an established reputation of being at the forefront of innovative developments in the capital markets space. There is a growing interest in fully regulated digital asset products in the Asia Pacific region and we are delighted to advise on the development of this first-in-class product designed specifically for this market. Many congratulations to all parties involved in this successful offering!”Linklaters regularly advises on first-to-market digital assets and structured finance transactions and has recently advised on the inaugural tokenised green bond by the Hong Kong SAR Government. The firm also advised BondEvalue on the successful launch of the world’s first fractionalised bond exchange, the BondbloX Bond Exchange, as well as the European Investment Bank on the issuance of its first ever notes in digital form on the Ethereum public blockchain.
