Furthering its digital asset capabilities, UBS has launched Hong Kong’s first tokenized warrant on the Ethereum network.
UBS has launched Hong Kong’s first-ever investment grade tokenized warrant on the Ethereum public blockchain network, according to a statement.
Utilizing the bank’s in-house tokenization service, UBS Tokenize, Xiaomi is the call warrant’s underlying stock and it was sold to OSL Digital Securities Limited, a licensed virtual asset platform operator.
Key Features
According to the bank, key features of the tokenized warrant include increased accessibility and extended trading hours, increased cost efficiency and transparency on a decentralized ledger.
«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,» added OSL Group chairman and CEO Patrick Pan.
Digital Asset Growth
The tokenized warrant marks yet another milestone in UBS’s ongoing efforts to grow its digital asset capabilities. In 2022, the bank issued its first $50 million tokenized fixed rate note sold to APAC clients through the UBS Tokenize platform.
«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, UBS Global Markets.
