China’s BOCI, a state bank, has announced the successful issuance of 200 million CNH in completely digital structured securities in Hong Kong. This marks a significant first both for Chinese financial institutions issuing tokenized securities in Hong Kong and for products on Ethereum in the Asia Pacific.
Giant Step from China!
BOCI has made history by successfully issuing 200 million CNH in completely digital structured bonds, becoming the first Chinese financial institution to issue tokenized securities in Hong Kong. The product, which was developed by UBS, has been offered to clients in the Asia Pacific, highlighting a promising long-term partnership between BOCI and UBS in the realm of digital structured notes.
In December 2022, UBS issued a tokenized fixed-rate note valued at 50 million USD, digitized on a permitted blockchain under British and Swiss law. Both BOCI and UBS took innovative steps in terms of applicable laws and types of blockchains by issuing these digital securities. This transaction signifies the first product of its kind in the Asia Pacific, created under Hong Kong and Swiss laws and tokenized on the main Ethereum blockchain, successfully introducing regulated securities to a public blockchain.
BOCI Announcements!
Being an overseas investment banking institution of the BOC Group, BOCI has a long history of serving a variety of customer types through continuous product innovation. BOCI was the first Chinese financial institution to issue structured bonds abroad. At present, BOCI is a leading Chinese issuer providing a complete range of products, large-volume issuance, and comprehensive services to its clients. BOCI Deputy CEO Ms. Ying Wang stated:
BOCI is delighted to be at the forefront of technological financing and innovation in digital finance. By collaborating with UBS, we are simplifying digital asset markets and products for our clients in the Asia Pacific through the development of blockchain-based digital structured products specifically designed for them. We are encouraged by the evolution of Hong Kong’s digital economy and are committed to supporting the digital transformation and innovative development of Hong Kong’s finance industry.
UBS continues to expand its tokenization services across structured products, fixed income, and repo financing through UBS Tokenize. Furthermore, Aurelian Troendle, the Global Head of MTN Trading at UBS AG, added:
High-frequency issuance activity can benefit from significant efficiency gains through the use of blockchain technology, ultimately providing advantages to investors. UBS is excited to work with issuers like BOCI to expand our customer offering through our tokenization capabilities.
