Bank of China International (BOCI) has become the first Chinese financial institution to issue tokenized securities in Hong Kong, according to a UBS press release. On June 9, 2023, Hong Kong time, BOCI successfully issued fully digital structured notes worth RMB 200 million. This product was launched by UBS and sold to its clients in the Asia-Pacific region, marking the beginning of a long-term cooperation between BOCI and UBS in the field of digital structured notes.
BOCI partners with UBS to issue tokenized notes
UBS issued $50 million worth of tokenized fixed-rate notes in December 2022 under UK and Swiss law and digitized on a permissioned blockchain. Through this issuance of digital securities, BOCI and UBS have achieved new breakthroughs in compliance and blockchain. The transaction is the first regulated security in the Asia-Pacific region to be tokenized on the Ethereum mainnet under the legal framework of Hong Kong and Switzerland, introducing a success story to public blockchains.
As the overseas investment banking arm of Bank of China Group, BOCI has a long history of continuous product innovation and provides a full range of services to a variety of clients, the release said. BOCI is the first Chinese financial institution to issue structured notes overseas and is currently the leader in the Chinese market in terms of issuance volume and service integrity.
Wang Ying, deputy chief executive of BOCI, said: "BOCI is very pleased to maintain its leading position in the fields of technology finance and digital finance. Through cooperation with UBS, we are committed to developing blockchain-based digital structured products for customers in the Asia-Pacific region and promoting Simplification of digital asset markets and products. 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.”
At the same time, UBS continues to expand its range of tokenization services through UBS Tokenize to include structured products, fixed income and repo financing.
Aurelian Troendle, global head of MTN trading at UBS, said: “We are pleased to partner with BOCI to bring structured products to the public blockchain network to support the growing interest in fully regulated digital asset products among clients in the Asia-Pacific region. Through the zone Blockchain technology and high-frequency issuance activities can achieve huge efficiency improvements, thereby benefiting investors. UBS is pleased to work with issuers such as BOCI through tokenization capabilities to expand our client services.”
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