In a groundbreaking move that sets a new precedent in the world of finance, BOCI, a leading Chinese investment bank, has successfully issued tokenized notes worth CNH 200 million. This historic development announced last week establishes it as the first Chinese financial institution to introduce tokenized securities to the Hong Kong market. The issuance, originating from a collaboration with UBS, marks a significant milestone in the advancement of digital structured products.
Expanding Horizons: Embracing Digitalization and Blockchain Technology
Building on its track record of product innovation and commitment to serving clients, BOCI has constantly sought opportunities to spearhead technological advancements in the financial industry. In this context, its alliance with UBS has paved the way for the creation of fully digital structured notes, underlining their shared vision for driving innovation and simplification in technology finance and digital finance.
By leveraging blockchain technology, BOCI and UBS have successfully introduced regulated securities onto the Ethereum blockchain, effectively merging the realms of traditional finance and digital assets. This milestone transaction has not only demonstrated the potential for tokenization but has also marked a significant step forward in terms of applicable law and blockchain implementation.
The tokenized notes issued by BOCI under Hong Kong and Swiss law have created a new frontier for the Asia Pacific, unlocking the possibilities of regulated securities on a public blockchain.
Transforming the Landscape: BOCI’s Legacy of Innovation
As an overseas investment banking institution of the BOC Group, BOCI has a rich history of innovation, continually developing new products and delivering comprehensive services to its diverse client base. The successful issuance of tokenized notes further cements the company’s position as a leading Chinese issuer with a full range of investment banking services. Its reputation for pioneering structured notes overseas has propelled the institution to the forefront of the industry.
UBS and BOCI: Jointly Shaping the Future of Finance
UBS, a global financial services provider, has been instrumental in driving the adoption of tokenization. Having previously issued a tokenized fixed rate note under English and Swiss law, UBS’s partnership with BOCI signifies their commitment to expanding tokenization services across structured products, fixed income, and repo financing.
By partnering with BOCI, UBS continues to broaden its client offering through its advanced tokenization capabilities, meeting the growing demand for fully regulated digital asset products in the Asia Pacific region.
Fueling Hong Kong’s Digital Transformation
Both BOCI and UBS are enthusiastic about Hong Kong’s evolving digital economy and are dedicated to contributing to the city’s financial industry’s digital transformation and innovative development. The successful tokenized note issuance represents a major stride forward. The successful tokenized notes issuance represents a major stride forward, with BOCI Deputy CEO Ms. Ying Wang expressing pride in driving the simplification of digital asset markets and products in the Asia Pacific region.
This collaborative effort not only showcases the potential of blockchain-based digital structured products but also reinforces Hong Kong’s position as a global financial hub at the forefront of digitalization.
Final Thoughts
BOCI’s trailblazing issuance of tokenized notes in collaboration with UBS has transformed the financial landscape by introducing regulated securities onto a public blockchain. This historic achievement paves the way for the convergence of traditional finance and digital assets, propelling the industry forward and reinforcing Hong Kong’s position as a global leader in financial innovation.