BOCI Securities Limited issues the first batch of tokenized notes in collaboration with UBS to distribute to its Hong Kong clients.

According to a UBS press release, Bank of China International (BOCI) has become the first Chinese financial institution to issue tokenized securities in Hong Kong. On June 9, 2023, Hong Kong time, BOCI successfully issued fully digital structured notes worth 200 million RMB. The product was initiated by UBS and sold to its clients in the Asia Pacific region, marking the beginning of a long-term collaboration between BOCI and UBS in the digital structured notes space.

BOCI International and Swiss Bank Collaborate to Issue Tokenized Notes

In December 2022, a Swiss bank issued $50 million worth of tokenized fixed-rate notes under UK and Swiss law, digitized on a permissioned blockchain. Through this issuance of digital securities, BOCI and UBS have achieved new breakthroughs in compliance and blockchain. This transaction represents the first regulated security tokenization in the Asia-Pacific region under the legal frameworks of Hong Kong and Switzerland, realized on the Ethereum mainnet, introducing a successful case for public blockchain.

The press release stated that as an overseas investment banking institution of Bank of China Group, BOCI has a long history of continuous product innovation, providing comprehensive services to various clients. BOCI is the first Chinese financial institution to issue structured notes overseas and currently leads the Chinese market in terms of issuance volume and service integrity.

Wang Ying, Deputy CEO of BOCI, said, "BOCI is pleased to maintain a leading position in the fields of tech finance and digital finance. Through our collaboration with UBS, we are committed to developing blockchain-based digital structured products for clients in the Asia-Pacific region, driving the simplification of digital asset markets and products. We are encouraged by the evolution of Hong Kong's digital economy and are dedicated to promoting the digital transformation and innovative development of the Hong Kong financial industry."

Meanwhile, the Swiss bank expands its tokenization services through UBS Tokenize, including structured products, fixed-income, and repurchase financing.

Aurelian Troendle, Global MTN Trading Head at the Swiss bank, stated, "We are excited to collaborate with BOCI to bring structured products onto public blockchain networks, supporting Asia-Pacific clients' increasing interest in fully regulated digital asset products. Through blockchain technology, significant efficiency gains can be achieved in high-frequency issuance activities, benefiting investors. The Swiss bank is pleased to expand our customer service range through tokenization capabilities and collaboration with issuing institutions like BOCI."