Crypto Analyzer

BOCI and UBS Break New Ground with CNH 200 Million Fully Digital Structured Notes Issuance

In a groundbreaking development, BOC International Holdings Limited (BOCI), in collaboration with UBS, has successfully issued CNH 200 million fully digital structured notes. This is a historic move, as it makes BOCI the first Chinese financial institution to issue a tokenized security in Hong Kong.

The fully digital product was originated by UBS and placed among its clients across Asia Pacific, highlighting the long-standing partnership between BOCI and UBS in the realm of digital structured notes.

UBS is no stranger to the world of digital securities. It made a pioneering move in December 2022 when it issued a USD 50 million tokenized fixed rate note, under English and Swiss law, using a permissioned blockchain.

This new issuance by BOCI and UBS stands as a significant step forward in the utilization of blockchain and legal compliance. The transaction signifies the debut of such a product in Asia Pacific, established under Hong Kong and Swiss law and tokenized on the main Ethereum blockchain. This successful operation has introduced regulated securities onto a public blockchain for the first time.

As the overseas investment banking arm of the BOC Group, BOCI has a rich history in serving a variety of clients through continuous product innovation. Being the first Chinese financial institution to issue structured notes overseas, BOCI has now solidified its status as a leading Chinese issuer with an extensive range of products, large volume of issuance, and comprehensive services for its clients.

“We are extremely pleased to pioneer innovation in technology finance and digital finance,” said Ms. Ying Wang, Deputy CEO at BOCI. “Through our partnership with UBS, we aim to simplify digital asset markets and products for our customers in Asia Pacific. The evolution of Hong Kong’s digital economy is encouraging and we are devoted to promoting the digital transformation and innovative development of Hong Kong’s financial industry.”

Meanwhile, UBS is set to further expand its tokenization services via its UBS Tokenize platform, encompassing structured products, fixed income, and repo financing.

“We are delighted to partner with BOCI on this transaction, supporting our APAC clients’ growing interest in fully regulated digital asset products.” remarked Aurelian Troendle, Global Head of MTN Trading at UBS AG. “High-frequency issuance activity stands to greatly benefit from the efficiency gains that blockchain technology can provide. We are eager to collaborate with issuers like BOCI to extend our client offering through our tokenization capabilities.”