UBS Launches Hong Kong’s First Tokenized Warrant on Ethereum
In Brief
UBS AG unveiled Hong Kong’s inaugural investment-grade tokenized warrant on the Ethereum public blockchain network.
Switzerland universal bank UBS AG announced the launch of Hong Kong’s first-ever investment-grade tokenized warrant on the Ethereum public blockchain network. According to the announcement, the product utilizes the on-chain issuance product framework offered by UBS Tokenize, the bank’s in-house tokenization service.
The product is a call warrant with Xiaomi Corporation as the underlying stock. It’s the first natively issued warrant on a public blockchain and was sold to OSL Digital Securities Limited.
“The introduction of the UBS tokenized warrant reinforces the bank’s position as the leading derivative products issuer in Hong Kong1. Created natively on a public blockchain in a permissioned environment, this innovative product enhances transparency, reduces transaction fees, streamlines settlement processes, and allows for more flexible trading hours,” said Winni Cheuk, head of sales, APAC Public Distribution at UBS Global Markets.
Tokenized warrants have multiple benefits, including improved accessibility, efficiency, and transparency. Tokenization opens new avenues for investors to access digitally structured products, while blockchain technology enables better accessibility and extends trading hours.
Smart contracts streamline trading processes, lower handling costs and enhance efficiency compared to traditional channels. Moreover, blockchain technology ensures transparency by storing all transactions and ownership records on a decentralized ledger.
UBS Advances Global Tokenization and Distributed Ledger Tech
UBS Tokenize is part of their ongoing work in tokenization services and globally distributed ledger technology, focusing on various digital asset opportunities, including bonds, funds, and structured products. In 2022, UBS issued the first-ever USD 50 million tokenized fixed rate note sold to Asia Pacific clients through the UBS Tokenize platform.
This launch represents UBS’s ongoing effort to advance its tokenization services, building upon its exploration of digital asset opportunities since 2015.
“OSL is proud to be working with the team of blockchain and product experts at UBS. We are simulating the whole product life cycle of an equity-linked structured product token, from token mint through simulated secondary market transactions, and finally to token burn at maturity,” said Patrick Pan, chairman and CEO at OSL Group.
“Hong Kong’s regulated virtual asset landscape has just crossed another major milestone with this Investment grade tokenized financial product issuance,” Pan added.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
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Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.
