The first tokenized securities were issued in Hong Kong
BOCI, the investment banking arm of Bank of China, has achieved a landmark feat by issuing 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. BOCI collaborated with UBS for the origination of the product, which was placed with UBS’s clients in the Asia Pacific region.
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Previously, in December 2022, UBS had ventured into the digital securities space by issuing a USD 50 million tokenized fixed rate note under English and Swiss law, which was digitized on a permissioned blockchain.
This new issuance by BOCI and UBS represents a pioneering step in legal application and blockchain utilization. The transaction is the inaugural product in the Asia Pacific region to be constituted under both Hong Kong and Swiss law, and tokenized on the main Ethereum blockchain. This represents a significant milestone in integrating regulated securities into a public blockchain.
BOCI has established itself as a pioneer in product innovation, serving a diverse clientele. As the first Chinese financial institution to issue structured notes overseas, BOCI boasts an impressive portfolio of products and has been a leading Chinese issuer with a high volume of issuance and comprehensive services.
Ms. Ying Wang, Deputy CEO at BOCI, expressed excitement about being at the forefront of technological and financial 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,” she said. She also spoke of BOCI's commitment to bolstering Hong Kong's financial industry's digital transformation and innovative development.
Meanwhile, UBS continues to augment its tokenization services via UBS Tokenize, encompassing structured products, fixed income, and repo financing. Aurelian Troendle, Global Head of MTN Trading at UBS AG, highlighted the benefits of employing blockchain technology for high-frequency issuance activity, which yields significant efficiency gains and benefits for investors. “UBS is excited to work with issuers like BOCI to broaden our client offering through our tokenization capabilities,” he added.
BOCI, as a wholly-owned investment bank of Bank of China, offers an array of investment banking services to clients domestically and internationally. Its services range from corporate finance, M&A, financial advisory, securities sales, and more.
UBS, a global financial services firm, offers financial advice and solutions to a wide spectrum of clients including wealthy individuals, institutions, corporations, and private clients in Switzerland. With a presence in major financial centers worldwide, UBS employs over 68,000 people globally.
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