Bank of Communications (Bocom), one of China’s largest banks, has issued a digital bond of $ 300 million in Hong Kong and will be among the first lenders from China to explore to explore Blockchain bonds in the city state.
In the meantime tokenization The arm -race is heated. Singapore recently launched a digital bond allowance similar to Hong Kongs as the two financial hubs of the site of China’s digital financial hub.
Bank of Communications issues $ 300 million digital bonds
Bocom issued the unsecured three-year digital bond at Orion, the permissible blockchain network developed by HSBC (Nasdaq: HSBC). It will rely on a secured overnight frequency (SOFT) Float interest rate; The bank says it is the first floating interest rate digital bond at Orion.
A liquid speed bond means that the interest that investors receive fluctuates over time according to a degree of reference-this time is the sofa interest rate.
London -based law firms Linklaters and A&O Shearman Notified Bocom on the issue. The two companies described The bond as the first digitally native issue of a bank from the mainland. However, some stores report that cash transactions will not be implemented on the chain.
Also Moody’s (Nasdaq: MCO), which assigned Bond an A2 rating, noted that “decommissioning notes and payment of head and interest is carried out in fiat currency outside blockchain.”
As a digital native bond, it would have been the first of a Chinese bank. However, it is not the first blockchain-based binding of a Chinese lender; Five years ago Issued $ 2.8 billion in bonds on a blockchain platform. The bank, which is the fourth largest in the world, noted that it was using blockchain for “interaction and insertion of key information and documents.”
In its rating, Moody’s added that the permitted and private nature of Orion Blockchain makes it easier to deal with any errors. The network has also been used in dozens of other high -profile emissionsWhich makes it a reliable choice. Last time it was used To issue a digital bond of $ 190 million by the Chinese state -owned holding company Zhuhai Huafa Group.
In addition Central money market unit (CMU), run by Hong Kong Monetary Authority (HKMA), holds a backup register of investors who can be trusted even if Orion failed, added.
The integration with CMU has become one of the important features of bonds issued on Orion. It expands the investor base and also allows those who are not familiar with blockchain to invest through conventional channels access to the blockchain bindings.
Singapore launches digital bond allowance system
Singapore and Hong Kong have been rivals in financial services for decades, with both competing to be Asia’s ultimate financial center. But on tokenization, Hong Kong has taken a clear leadershipWith enabling laws, partnerships in the private public sector and state aid that cement their position.
Singapore is looking to change this recently launching A digital bond provides the system to promote the growth of the sector. The system reflects near a program that was launched by Hong Kong Central Bank in November last year.
The Monetary Authority in Singapore (MAS) launched the Global-Asia Digital Bond Grant Scheme (G-ADBG) last week to “catalyze the issuance and broader market application of digital bonds in Singapore.”
In order to qualify for the grant, the issuer must be a non-bank unit based in Asia. The bond must also be issued in one of four currencies: USD, euro, yen or the local dollar, SGD. Hong Kong, on the other hand, does not set these restrictions.
In addition, in order to qualify for the Singapore grant, the bond must be issued and listed locally and have a minimum publishing size of $ 74 million (where the issue is over $ 150 million, it must be digital native). Hong Kong demands that the smallest issue is at least $ 130 million but has no requirement for digitally native emissions despite the size.
The other important difference between the two jurisdictions is that the issuer of Hong Kong must have five or more investors in the bond, who must not be associated with the issuer; Singapore has no such requirements.
While Singapore Has settled behind Hong Kong in the tokenization arena, its central bank has laid the foundation for the sector to explode. Its landmark initiative is Project Guardian, whose members include Deutsche Bank (Nasdaq: db), Marsh group, Moody’sJP Morgan (Nasdaq: JPM), HSBC, S&P Global (Nasdaq: SPGI, Ubs (Nasdaq: Ubs) and faithfulness (Nasdaq: FNCMX).
It is expected that these members will now be encouraged to issue digital bonds according to the new schedule, which would create an ecosystem that can easily compete with Hong Kongs in a few years.
See: Universal blockchain asset unlocks the future for payments
https://www.youtube.com/watch?v=cen6ybzqedc title = “youtube video player” Framebord = “0” Allow = “accelerometer; Autoplay; clipboard writing; encrypted media; gyroscope; image-in-image; web-share” reference policy = “strict-origin-short-origin” allow of screen = “”>
