- BOCI and UBS collaborate to issue digitally structured notes.
- This collaboration marks the first time a Hong Kong financial institution has tokenized a security.
BOCI, in partnership with UBS Group, has made a significant stride in the financial sector by issuing fully digital structured notes worth CNH 200 million (approximately $28 million) on the Ethereum blockchain.
This historic transaction signifies the first tokenized security offered by a Chinese financial institution in Hong Kong. UBS, the originator and collaborator with BOCI, highlights that this achievement ushers regulated securities onto a public blockchain governed by Hong Kong and Swiss law.
BOCI, building upon UBS’s successful issuance of a $50 million tokenized fixed-rate note in December 2022, has now completed the distribution of CNH 200 million fully digital structured notes. The assignment showcases advancements in applicable laws and blockchain technology, making it a pioneering endeavor in Asia.
BOCI’s Pioneering Role
As an overseas investment banking institution of the Bank of China Group, BOCI boasts a storied history of serving diverse clients through continuous product innovation. BOCI’s distinction lies in being the first Chinese financial institution to issue structured notes internationally.
BOCI is a leading Chinese issuer, providing comprehensive products and services to its clients with substantial issuance volumes. BOCI’s participation in this groundbreaking transaction demonstrates its commitment to technological and digital finance innovation.
Driving Simplification and Transformation
Ms. Ying Wang, the Deputy CEO at BOCI, expresses tremendous satisfaction in being at the forefront of technology and digital finance innovation:
“Working together with UBS, we are driving the simplification of digital asset markets and products for customers in Asia Pacific through the development of blockchain-based digital structured products designed specifically for customers in Asia Pacific. 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.” -Wang.
By leveraging blockchain-based digital structured products specifically tailored for this market, BOCI aims to promote the digital transformation and innovative development of Hong Kong’s financial industry.
UBS’s Tokenization Services:
UBS caters to global institutional clients and corporations and continues expanding its tokenization services through UBS Tokenize.
This initiative encompasses structured products, fixed income, and repo financing, addressing the growing demand for fully regulated digital asset products among its Asia Pacific clients.
Aurelian Troendle, Global Head of Medium-Term-Note (MTN) Trading at UBS AG, conveys excitement about incorporating structured products onto a public blockchain network, citing the potential efficiency gains it offers for high-frequency issuance activities:
“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 our client offering through our tokenization capabilities.” -Troendle.
Conclusion
Both BOCI and UBS are resolute in advancing financial innovation and harnessing the potential of blockchain technology.
BOCI’s issuance of CNH 200 million fully digital structured notes on the Ethereum blockchain, in conjunction with UBS, marks a groundbreaking achievement for the Chinese financial industry. This momentous transaction introduces regulated securities onto a public blockchain, fostering enhanced efficiency, transparency, and accessibility.
The collaboration between BOCI and UBS underscores their unwavering commitment to driving financial innovation and simplifying digital asset markets. As blockchain technology continues to gain traction, the issuance of tokenized securities represents a significant stride toward reshaping the future of finance.
