Chinese Bank BOCI Makes History with First Tokenized Security on Ethereum Blockchain

Updated: 12 June 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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BOCI sent ripples across the digital asset community when it issued CNH 200 million worth of fully structured digital notes. This made the Chinese-owned investment bank the first institution to tokenize securities in Hong Kong.

Supporting BOCI during this launch was the Switzerland-based financial advisory company UBS. UBS has a track record for digitizing securities after it issued and tokenized $50 million in December 2022.

Following the major announcement, Deputy CEO at BOCI, Ms Ying Wang, explained, “BOCI is very pleased to be at the forefront of innovation in technology finance and digital finance. “

Working together with UBS, we are driving the simplification of digital asset markets and products, for customers in Asia Pacific through the development of blockchain-based digital structured products, designed specifically for customers in Asia Pacific. We are encouraged by the evolution of Hong Kong’s digital economy and are committed to promoting the digital transformation and innovative development of Hong Kong’s financial industry.”

Why is BOCI’s Investment Such a Big Deal?

The partnership between BOCI and UBS has opened doors for the adoption of more securities into digitally structured notes. But what benefit does this advancement have for the local investor or the layman?

Digitized structured securities will improve financial innovation by a long shot. These new-age digital legal tenders are a perfect blend of fiat benefits wrapped around the power of blockchain systems. They will give retail investors easy access to derivatives and non-traditional payoffs.

In particular, BOCI’s move has secured a digital CHN equivalent for the Asian Pacific region through the Ethereum blockchain. This means regional investors can enjoy a less-limiting and more enhanced monetary system with remarkably customized risk returns.

Consequently, the Global Head of MTN Trading, Aurelian Troendle, commended the partnership’s efforts, saying, “High-frequency issuance activity can benefit from vast efficiency gains through blockchain technology, which will ultimately bring advantages to investors. UBS is excited to work with issuers like BOCI to broaden our client offering through our tokenization capabilities.”

Financial Fact or Overhyped Fiction?

Despite this promising outlook, crypto enthusiasts on Twitter seem rather uncertain that the BOCI has rolled out the tokens as they claim. Crypto fans are asking for Etherscan links and details of the individuals or entities that bought the notes.

show me the etherscan link or it didn’t happen

— PSY (@PSYTWEAK) June 12, 2023

BOCI is yet to respond to these requests or provide digital proof of the process. However, this doesn’t mean it’s all made up. If anything, the drive to harness the power of blockchain systems is high, and a lot that was previously unimaginable is now possible.

About BOCI and UBS

BOCI Investment Bank is a full entity of the Bank of China. The firm offers overseas clients a range of investment banking services like financial advisory, corporate finance, private banking, mergers and acquisitions, securities, and sales.

UBS is a Switzerland-based financial advisory company. The firm is listed on the New York Stock Exchange (NYSE) and the SIX Swiss Exchange. It offers a range of solutions to individuals, institutions, and corporations on a global scale.

Specifically, UBS focuses on wealth management and capital efficiency for sustained structural growth and has a global footprint in over 50 regions across America, Europe, Africa, and the Middle East.