UBS has launched an investment-grade tokenized warrant in Hong Kong via the Ethereum public blockchain, utilizing its UBS Tokenize issuance platform. This product, a call warrant on Xiaomi stock, was acquired by OSL Digital Securities.
Winni Cheuk, UBS Global Markets’ Head of Sales for APAC Public Distribution, highlighted that this development underscores UBS’s leadership in derivative products in Hong Kong. The tokenized warrant, built on a permissioned segment of the public blockchain, aims to improve transparency, lower transaction costs, simplify settlements, and offer extended trading flexibility.
UBS has been a significant player in the digital ledger technology (DLT) domain, co-founding the Fnality payment system and actively engaging in web3 advancements.
Tokenized Warrant: UBS’s Tokenization Efforts Expand
UBS Wealth Management previously issued $50 million in digital debt securities for Asian high-net-worth clients. Following this, the Bank of China Investment (BOCI) launched digital structured notes on Ethereum using the UBS Tokenize platform.
Moreover, UBS has participated in several public blockchain experiments under Singapore’s Project Guardian, including a tokenized money market fund and a cross-border repurchase agreement (repo) trial involving a digital bond, in collaboration with SBI and DBS, spanning Japan, Singapore, and Switzerland.
Aside from these public blockchain explorations, UBS has implemented intraday cross-border repos through Broadridge’s Distributed Ledger Repo (DLR), a permissioned blockchain system, including a transaction with an Asian bank prior to the Project Guardian repo trial.
In other developments, UBS is among five banks in Hong Kong’s second government digital green bond issuance. With Goldman Sachs’ and HSBC’s tokenization platforms used in previous issuances, UBS’s Tokenize platform might be considered for future issuances.
