BOCI, a leading Chinese financial institution, issued the first tokenized security in Hong Kong, reaching a milestone in digital finance. The CNH 200 million fully digital structured notes, originated by UBS, have been placed with clients in Asia Pacific, signaling a significant collaboration between BOCI and UBS in the field of digital structured notes.

This development follows UBS’s issuance of a $50 million tokenized fixed rate note in December 2022, under English and Swiss law, in a permissioned blockchain. The latest venture takes a step forward, marking the first such product in Asia Pacific, incorporated under the laws of Hong Kong and Switzerland, and tokenized on the main Ethereum blockchain.

Both BOCI and UBS are pioneers in the use of blockchain technology to improve efficiency in high-frequency issuance activities. Ms. Ying Wang, Deputy Executive Director of BOCI, expressed the institution’s dedication to driving the simplification of digital asset markets and products through blockchain-based digital structured products. She also highlighted BOCI’s commitment to promoting the digital transformation of Hong Kong’s financial industry.

Meanwhile, UBS continues to expand its tokenization services, targeting structured products, fixed income, and repo financing through its UBS Tokenize platform. Aurelian Troendle, Global Head of MTN Trading at UBS AG, emphasized the potential benefits that blockchain technology can offer investors.

This milestone achieved by BOCI and UBS signals a new era of digital values, paving the way for more innovations in the field.