UBS has launched Hong Kong’s first-ever investment-grade tokenised warrant on the Ethereum public blockchain network.
The new product utilises the on-chain issuance product framework offered by the bank’s in-house tokenisation service, UBS Tokenize, and is a call warrant with Xiaomi Corporation as the underlying stock.
“The introduction of the UBS tokenised warrant reinforces the bank’s position as the leading derivative products issuer in Hong Kong,” said Winni Cheuk, head of sales, APAC public distribution, UBS Global Markets.
“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.”
The tokenized warrants’ key benefits include increased accessibility through access to digital structured products, improved efficiency through the use of smart contracts, and better transparency through the use of blockchain technology.
“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 chief executive at OSL Group.
“Hong Kong’s regulated virtual asset landscape has just crossed another major milestone with this Investment grade tokenised financial product issuance.”