Tag: Tokenized Security

BOCI and UBS Partner to Issue First Tokenized Security in Hong Kong

by Blockchain News

BOCI, a leading Chinese financial institution, has 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, indicating a significant collaboration between BOCI and UBS in the digital structured notes arena.

This development comes after UBS’s issuance of a USD 50 million tokenized fixed rate note in December 2022, under English and Swiss law, on a permissioned blockchain. The latest venture takes a step forward, marking the first product of its kind in Asia Pacific, constituted under Hong Kong and Swiss law, and tokenized on the main Ethereum blockchain.

Both BOCI and UBS are pioneering the use of blockchain technology to enhance efficiency in high-frequency issuance activities. Ms Ying Wang, Deputy CEO at 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 promote the digital transformation of Hong Kong’s financial industry.

Meanwhile, UBS continues to broaden 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 blockchain technology can offer to investors.

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

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One of Europe’s largest investment banks issues security token on Tezos

by Cointelegraph

European financial behemoth Société Générale has issued a security token on the Tezos blockchain.

According to an announcement on Thursday, the move constitutes the first tokenized asset offered by Société Générale.

The bank stated that the security token offering was a significant milestone in the efforts to begin full-spectrum cryptocurrency market operations by 2022.

Société Générale, through its subsidiary, Société Générale – Forge, reportedly plans to issue tokenized securities that can be integrated with legacy banking systems. Apart from asset tokenization, the bank’s crypto foray will also include exchange and custody services for institutional clients. The bank stated:

“This new experimentation, performed in accordance with best market practices, demonstrates the legal, regulatory and operational feasibility of issuing more complex financial instruments (structured products) on public blockchain.”

The maiden security token issuance marks the third consecutive year of crypto and blockchain adoption developments from the stables of Société Générale.

Back in 2019, the bank, via its specialized credit institution Société Générale SFH, issued a 100-million euro bond as a tokenized security on Ethereum.

In May 2020, SFH and SG Forge, together with the Banque de France, issued a tokenized 40-million-euro bond, settled using an experimental central bank digital currency.

Indeed, Société Générale is one of the financial institutions tapped by France’s central bank to conduct its experimental central bank digital currency pilot study.

Earlier in April, Société Générale was among a group of global banks hired by the European Investment Bank to utilize blockchain in digital bond issuance.

While the European Union is yet to arrive at definitive regulations for crypto and blockchain, Société Générale is one of many financial institutions in the region experimenting with the novel technology.