Bank of China International and UBS Make History with First Tokenized Security Issuance in Hong Kong

BOCI (Bank of China International) has achieved a significant milestone by successfully issuing CNH 200 million worth of fully digital structured notes, becoming the first Chinese financial institution to issue a tokenized security in Hong Kong.

This groundbreaking product, originated by UBS (Union Bank of Switzerland), has been placed with clients in the Asia Pacific region, signifying a strong and enduring collaboration between BOCI and UBS in the realm of digital structured notes.

The recent achievement builds upon UBS’s previous success in December 2022 when it issued a tokenized fixed-rate note worth USD 50 million under English and Swiss law, utilizing a permissioned blockchain. With the issuance of these digital securities, both BOCI and UBS have made significant advancements in terms of applicable law and blockchain technology.

This transaction marks the first-ever product of its kind in Asia Pacific, adhering to both Hong Kong and Swiss law while being tokenized on the main Ethereum blockchain. Such a milestone successfully introduces regulated securities onto a public blockchain, opening new possibilities for the financial industry.

As an overseas investment banking institution under the BOC Group, BOCI has a long-standing reputation for serving clients through continuous product innovation. Notably, BOCI was the pioneer among Chinese financial institutions to issue structured notes overseas, solidifying its position as a leading Chinese issuer offering a wide range of products, high issuance volumes, and comprehensive services to its clients.

Ms. Ying Wang, Deputy CEO at BOCI, expressed her satisfaction with the institution’s position at the forefront of technology and digital finance innovation. She highlighted the collaborative efforts between BOCI and UBS aimed at simplifying digital asset markets and products for customers in the Asia Pacific region.

By developing blockchain-based digital structured products tailored specifically for this market, both institutions are committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry. Ms. Wang also commended the ongoing evolution of Hong Kong’s digital economy.

UBS, through its UBS Tokenize platform, continues to expand its tokenization services across various sectors, including structured products, fixed income, and repo financing. Aurelian Troendle, Global Head of MTN Trading at UBS AG, emphasized the importance of bringing structured products onto a public blockchain network, catering to the increasing interest of clients in the Asia Pacific region regarding fully regulated digital asset products. Troendle also highlighted the significant efficiency gains brought about by blockchain technology, particularly in high-frequency issuance activities, which ultimately benefit investors. UBS is excited about working with issuers like BOCI to enhance its client offerings through tokenization capabilities.

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