- BOCI, in collaboration with UBS, has issued CNH 200 million fully digital structured notes, marking the first tokenized security issuance by a Chinese financial institution in Hong Kong.
- The tokenized security, constituted under Hong Kong and Swiss law, is hosted on the main Ethereum blockchain, representing a significant step in introducing regulated securities onto a public blockchain.
In a significant stride towards the digitalization of finance, BOCI has successfully issued CNH 200 million in fully digital structured notes. This marks the first instance of a Chinese financial institution issuing a tokenized security in Hong Kong. The product was originated by UBS and placed with its clients in the Asia Pacific region, signifying a long-term collaboration between BOCI and UBS in the realm of digital structured notes.
Previously, UBS had issued a USD 50 million tokenized fixed rate note in December 2022 under English and Swiss law, digitized on a permissioned blockchain. With the recent issuance of these digital securities, both BOCI and UBS have taken innovative steps in terms of applicable law and blockchain types. This transaction is the first of its kind in the Asia Pacific region, constituted under Hong Kong and Swiss law and tokenized on the main Ethereum blockchain. This marks a successful introduction of regulated securities onto a public blockchain.
BOCI, an overseas investment banking institution of the BOC Group, has a long history of serving various types of clients through continuous product innovation. BOCI was the first Chinese financial institution to issue structured notes overseas. At present, BOCI is a leading Chinese issuer with a full range of products, large volume of issuance, and comprehensive services to its clients.
UBS continues to expand its tokenization services, through UBS Tokenize, across structured products, fixed income, and repo financing. The high-frequency issuance activity can benefit from vast efficiency gains through the use of blockchain technology, which will ultimately bring advantages to investors. UBS is excited to work with issuers like BOCI to broaden its client offering through its tokenization capabilities.
