The financial world is witnessing a pivotal shift as traditional institutions embrace blockchain technology and digital assets. A landmark transaction has recently emerged from Hong Kong, signaling strong momentum in the region’s digital finance evolution. BOCI (Bank of China International), a leading Chinese investment bank, has successfully issued a tokenized structured note worth 200 million RMB (approximately $27.7 million) on the Ethereum blockchain — marking a significant milestone in Asia’s regulated digital asset landscape.
This initiative, developed in collaboration with UBS Group, underscores growing institutional confidence in blockchain-based financial instruments. The note, fully compliant with both Hong Kong and Swiss regulations, represents the first such regulated security product in the Asia-Pacific region to be tokenized on a public blockchain.
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A New Era for Digital Structured Products
The newly launched digital structured note was originated by UBS and distributed to its clients in the Asia-Pacific region. This strategic collaboration marks the beginning of a long-term partnership between BOCI and UBS in the field of blockchain-powered financial innovation.
“This cooperation demonstrates our commitment to advancing digital asset markets for APAC clients through blockchain-based structured products tailored to regional needs,” said Wang Ying, Deputy Executive Director at BOCI. “We are encouraged by Hong Kong’s progress in digital economy development and remain dedicated to driving digital transformation and innovation within the financial sector.”
By leveraging Ethereum’s decentralized infrastructure, the transaction achieves greater transparency, faster settlement, and improved operational efficiency — key advantages over traditional paper-based securities issuance.
UBS has been at the forefront of asset tokenization. In December last year, it issued a $50 million fixed-rate tokenized bond under UK and Swiss law on a permissioned blockchain. The latest move extends UBS Tokenize’s capabilities into public blockchain networks, reinforcing its strategy to digitize a broad range of financial products including structured notes, fixed income instruments, and repo financing solutions.
“Partnering with BOCI allows us to bring structured products onto a public blockchain network, meeting rising demand from our APAC clients for fully regulated digital assets,” said Aurelian Troendle, Global Head of MTN Trading at UBS Group. “Blockchain enables significant efficiency gains, especially for high-frequency issuance activities — benefits that ultimately flow to investors.”
Why This Transaction Matters
The success of this tokenized note highlights several critical developments:
- Regulatory alignment: The product complies with both Hong Kong’s Securities and Futures Ordinance and Swiss financial laws, setting a precedent for cross-border digital securities.
- Institutional adoption: Major financial players like BOCI and UBS are actively integrating blockchain into core operations.
- Technology choice: Using Ethereum — a public, open-source blockchain — signals trust in decentralized networks for mission-critical finance applications.
These factors collectively indicate that tokenization is no longer experimental but a viable pathway for modern capital markets.
Hong Kong Opens Doors to Global Crypto Platforms
In parallel with institutional innovations, Hong Kong continues strengthening its position as a global hub for virtual asset regulation and innovation. Following the U.S. Securities and Exchange Commission’s (SEC) enforcement action against Coinbase — one of America’s largest cryptocurrency exchanges — Hong Kong lawmakers have publicly invited the platform to establish operations in the region under its new retail crypto trading licensing regime.
Wu Jiezhuan, a member of Hong Kong’s Legislative Council, tweeted: “I hereby invite all global virtual asset trading platforms, including @coinbase, to apply for official licenses in Hong Kong and expand their development plans here. Feel free to contact me — I’m happy to assist.”
This open invitation reflects Hong Kong’s proactive approach to attracting international players and building a transparent, investor-protected digital asset ecosystem.
A Regulated Framework for Retail Crypto Trading
On June 1, Hong Kong implemented comprehensive guidelines for virtual asset trading platforms — a move that brings retail crypto trading under formal regulatory oversight. The framework mandates strict requirements, including:
- Secure custody of user assets
- Full segregation of client funds
- Clear conflict-of-interest policies
- Robust cybersecurity standards
- Minimum capital and insurance requirements
Gary Tiu, Executive Director and Head of Regulatory Affairs at OSL — Hong Kong’s licensed crypto exchange — emphasized the significance: “This is a crucial milestone, not just for the industry but for investors too. For two years, retail investors have watched from the sidelines. Now, they can participate with confidence.”
Under the new rules, individual investors gain access to regulated platforms where their assets are protected through rigorous safeguards. This creates a level playing field and enhances market integrity.
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Frequently Asked Questions
Q: What is a tokenized note?
A: A tokenized note is a digital representation of a financial instrument — such as a bond or structured product — recorded on a blockchain. It offers benefits like faster settlement, 24/7 tradability, and programmable features via smart contracts.
Q: Why use Ethereum for issuing regulated securities?
A: Ethereum provides a secure, transparent, and globally accessible infrastructure. Its mature developer ecosystem and support for smart contracts make it ideal for complex financial products requiring automation and auditability.
Q: Can foreign crypto exchanges operate in Hong Kong?
A: Yes. Hong Kong welcomes licensed global platforms to apply under its new regulatory framework. All operators must meet stringent requirements related to capital, cybersecurity, and investor protection.
Q: Is retail crypto trading now legal in Hong Kong?
A: Yes — since June 1, authorized virtual asset platforms can offer retail trading services provided they obtain a license from the Securities and Futures Commission (SFC) and comply with all regulatory conditions.
Q: How does tokenization benefit investors?
A: Tokenization increases liquidity, reduces intermediaries, lowers costs, and enables fractional ownership. It also improves transparency through immutable transaction records on the blockchain.
Q: What role does UBS play in this BOCI transaction?
A: UBS originated the structured product and distributed it to its clients in the Asia-Pacific region. It also provided its tokenization expertise through UBS Tokenize, facilitating issuance on Ethereum.
Building a Global Gateway for Digital Finance
Hong Kong’s dual focus — fostering institutional innovation while welcoming global crypto platforms — positions it as a bridge between traditional finance and the digital asset economy. By embracing regulated blockchain applications and opening doors to companies like Coinbase, the city aims to become a premier gateway to China’s growing blockchain sector.
This strategic vision aligns with broader regional trends across Asia, where central banks and financial institutions are exploring central bank digital currencies (CBDCs), tokenized deposits, and programmable money.
👉 See how emerging financial hubs are redefining the future of investing and digital ownership.
Core Keywords
- Tokenized securities
- Ethereum blockchain
- Digital structured notes
- Hong Kong crypto regulation
- Asset tokenization
- Institutional crypto adoption
- Regulated crypto exchange
- UBS Tokenize
As blockchain technology matures and regulatory frameworks evolve, we are entering an era where digital finance is not just possible — it’s inevitable. With pioneers like BOCI and UBS leading the charge and cities like Hong Kong setting bold precedents, the future of finance is being rewritten — one block at a time.