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BOCI has successfully issued CNH 200 million fully digital structured notes, making it the first Chinese financial institution to issue a tokenized security in Hong Kong. The product was originated by UBS and placed to its clients in Asia Pacific, marking a long-term collaboration between BOCI and UBS in the space of digital structured notes.

UBS had issued a USD 50 million tokenized fixed rate note in December 2022 under English and Swiss law, digitized on a permissioned blockchain.

By issuing these digital securities, both BOCI and UBS have taken new steps in terms of applicable law and blockchain types. This transaction marks the first product of its kind in Asia Pacific constituted under Hong Kong and Swiss law and tokenized on the main Ethereum blockchain, successfully introducing regulated securities onto a public blockchain.

As an overseas investment banking institution of the BOC Group, BOCI has a long history in 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 complete services to its clients.

“BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance,” said Ms Ying Wang, Deputy CEO at BOCI. ”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.”

UBS continues to expand its tokenization services, through UBS Tokenize, across structured products, fixed income, and repo financing.

“We are pleased to work with BOCI on this transaction to bring structured products onto a public blockchain network, supporting our APAC clients’ increasing interest in fully regulated digital asset products.” said Aurelian Troendle, Global Head of MTN Trading at UBS AG. “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.“

About BOCI

BOCI is a wholly-owned investment bank of Bank of China, providing domestic and overseas clients with a full range of investment banking services, including corporate finance, mergers and acquisitions, financial advisory, securities sales, fixed income, private banking, asset management, direct investment, equity derivatives, leveraged and structured finance, global commodities, etc., and has maintained a leading position in Hong Kong’s IPO, stock trading, bond issuance, MPF and other markets and Chinese mainland capital markets for a long time.

About UBS

UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS’s strategy is centered on our leading global wealth management business and our premier universal bank in Switzerland, enhanced by Asset Management and the Investment Bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 31% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 20% in Asia Pacific. UBS Group AG employs over 68,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

Photo by Paolo Syiaco on Unsplash

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