The BOC Group's foreign investment banking institution, Bank of China known as BOCI, has a long history of using ongoing product innovation to serve a variety of clientele. BOCI was the first financial institution in China to export structured notes. BOCI is currently a top-tier Chinese issuer with a wide variety of products, a high volume of issuance, and comprehensive client services and has made history in the world of digital finance by issuing the first tokenized securities in Hong Kong. The placement of the CNH 200 million fully digital structured notes with clients in the Asia Pacific region, which were created by UBS, shows the importance of the partnership between BOCI and UBS in the field of digital structured notes.
This development occurs when Union Bank of Switzerland known as UBS issued a USD 50 million tokenized fixed rate note on a permissioned blockchain in December 2022, in accordance with English and Swiss legislation. The most recent project advances the field by becoming the first of its kind in Asia Pacific, organized under Swiss and Hong Kong law, and tokenized on the main Ethereum network.
Blockchain technology is being used by BOCI and UBS to increase the effectiveness of high-frequency issuance activities. The institution's commitment to advancing the simplification of digital asset markets and products using blockchain-based digital structured products was underlined by Ms. Ying Wang, Deputy CEO of BOCI. She said that, “BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance,” and also emphasized on BOCI's dedication to advancing the banking sector's digital transformation in Hong Kong.
Through the Tokenize platform, UBS continues to expand its tokenization services, focusing on investments with return linked with pre-defined features, cash flows with fixed interest and dividend, and repurchase agreement. The potential advantages blockchain technology may provide to investors were emphasised by Aurelian Troendle, Global Head of MTN Trading at UBS AG. Aurelian Troendle, Global Head of MTN Trading said, “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”. The achievement of this milestone by BOCI and UBS heralds a new age for digital securities and opens the door for additional advancements in the area.
Reference: UBS, 2023. BOCI issued first tokenized notes, originated by UBS and placed to its clients in Hong Kong
