BOCI, the investment arm of the Bank of China, has leveraged the Ethereum blockchain network to release digital structured notes worth $28 million. This marks the first instance of a Chinese institution issuing such tokenized securities in Hong Kong, according to a recent announcement by global investment bank UBS.
The aforementioned notes, with a value of CNH 200 million, were created by UBS and disbursed to customers located in the Asia-Pacific area. This occurrence signifies the initial instance of a product of this nature in the Asia-Pacific region, established in compliance with Hong Kong and Swiss legislation, and tokenized on the primary Ethereum blockchain.
Ying Wang, the Deputy CEO at BOCI, has stated in a formal statement that they are collaborating with UBS to facilitate the simplification of digital asset markets and products for customers located in the Asia Pacific region. This will be achieved through the creation of blockchain-based digital structured products that are tailored to meet the specific needs of customers in this region. It is worth noting that this initiative builds on UBS’ prior undertaking to tokenize fixed-rate notes valued at $50 million in December 2022, which were established in compliance with English and Swiss law.
Aurelian Troendle, who serves as the Global Head of MTN Trading at UBS AG, has expressed that the utilization of blockchain technology can result in significant efficiency improvements for high-frequency issuance activities. This, in turn, can provide investors with numerous benefits.
As per the press release, UBS intends to broaden its tokenization offerings to encompass fixed income, structured products, and repo financing. BOCI, which is a fully-owned investment bank of the Bank of China, provides clients with a comprehensive selection of investment banking services, both domestically and internationally.
BOCI offers a wide range of financial services, including corporate finance, financial advisory, private banking, asset management, direct investment, equity derivatives, leveraged and structured finance, global commodities, and other related services. The bank has established itself as a prominent player in various markets, including Hong Kong’s IPO, stock trading, bond issuance, and MPF markets, as well as the capital markets of mainland China, where it has maintained its leading position for an extended period of time.
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