Posted: February 7, 2024 at 9:49 am Up to date: February 7, 2024 at 9:49 am
Edited and verified: February 7, 2024 at 9:49 am
UBS AG has unveiled Hong Kong’s inaugural investment-grade tokenized allow on the Ethereum public blockchain community.
Swiss common financial institution UBS AG has introduced the launch of the first-ever Hong Kong funding tokenized warrant on the Ethereum public blockchain community. In keeping with the announcement, the product makes use of the on-chain issuance product framework provided by UBS Tokenize, the financial institution’s inside tokenization service.
The product is a name warrant with Xiaomi Company because the underlying inventory. It’s the first natively issued warrant on a public blockchain and was offered to OSL Digital Securities Restricted.
“The introduction of the UBS tokenized warrant strengthens the financial institution’s place because the main issuer of spinoff merchandise in Hong Kong1. Constructed natively on a public blockchain in a permissioned surroundings, this modern product will increase transparency, lowers transaction charges, streamlines settlement processes and permits extra versatile buying and selling hours,” stated Winni Cheuk, Head of Gross sales, APAC Public Distribution at UBS World Markets.
Tokenized warrants have an a variety of benefits, together with higher availability, effectivity and transparency. Tokenization opens up new avenues for buyers to entry digitally structured merchandise, whereas blockchain expertise permits higher accessibility and extends buying and selling time.
Good contracts streamline enterprise processes, cut back dealing with prices and improve effectivity in comparison with conventional channels. Moreover, blockchain expertise ensures transparency by storing all transactions and possession data in a decentralized ledger.
UBS Enhances World Tokenization & Distributed Ledger Tech
UBS Tokenize is a part of their ongoing work in tokenization providers and globally distributed ledger expertise, specializing in numerous digital asset alternatives, together with bonds, funds and structured merchandise. In 2022, UBS issued the primary ever fixed-rate tokenized word of USD 50 million offered to Asia Pacific shoppers by means of the UBS Tokenize platform.
The launch represents UBS’s continued efforts to advance its tokenization providers, constructing on exploration of digital asset alternatives since 2015.
“OSL is proud to accomplice with the workforce of blockchain and product consultants at UBS. We simulate the complete product lifecycle of an equity-linked structured product token, from token minting to simulated secondary market transactions and eventually burning the token at maturity,” stated Patrick Pan, Chairman and CEO of OSL Group.
“Hong Kong’s regulated digital asset surroundings has simply handed one other main milestone with this issuance of investment-grade tokenized monetary merchandise,” Pan added.
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