UBS launches Hong Kong’s first tokenised warrant

  • Union Bank of Switzerland (UBS) delivered Hong Kong’s first-ever tokenised warrant on Ethereum network, marking a significant leap in digital asset innovation.
  • Tokenised warrants, enabled by UBS’s advanced tokenisation services, offer enhanced efficiency and transparency in financial markets.
  • OSL Digital Securities Limited acquires UBS’s tokenised warrant, showcasing growing interest in blockchain-based financial products.

Union Bank of Switzerland (UBS) broadens its expertise in the digital asset realm by introducing Hong Kong’s inaugural tokenised warrant on the Ethereum network.

UBS brings Hong Kong’s first tokenised warrant

Yesterday, the Union Bank of Switzerland (UBS) announced the delivery of the first investment-grade tokenised warrant in Hong Kong on the Ethereum public blockchain network. The offering entails a call warrant with Xiaomi Corporation as the underlying stock.

This innovative product leverages UBS Tokenise, the bank’s internal tokenisation service, for on-chain issuance products. In addition, this marks the pioneering issuance of a warrant directly on a public blockchain.

OSL Digital Securities Limited, a licensed operator of virtual asset platforms and a subsidiary of OSL Group (formerly BC Technology Group), has acquired the tokenised warrant.

Also read: WealthPower Securities Applies for License to Engage in Virtual Asset-Related Activities with Hong Kong SFC

What are tokenized warrants?

Token warrants are financial instruments that grant the holder the right to purchase tokens from the issuing entity at a specified price on or before a predetermined expiration date.

Tokenised warrants offer greater efficiency compared to traditional ones by automating, streamlining, and reducing processing costs through the utilisation of smart contracts.

This tokenised warrant represents UBS’s ongoing commitment to advancing its tokenisation services.

Since 2015, UBS has been a pioneer in blockchain technology and digital assets. The focus remains on developing institutional-grade infrastructure for tokenised assets while exploring various digital asset opportunities.

Also read: Arkham Intelligence Debuts New Token, Offers Lucrative Bounties

Hearing them out

Head of Sales for APAC Public Distribution at UBS Global Markets, Winni Cheuk, commented on the transaction, saying, “The introduction of the UBS tokenized warrant reinforces the bank’s position as the leading derivative products issuer in Hong Kong1. This innovative product enhances transparency, reduces transaction fees, streamlines settlement processes, and allows for more flexible trading hours.”

According to Patrick Pan, Chairman and CEO of OSL Group, “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. “

Sylvia-Shen

Sylvia Shen

Sylvia Shen, an intern reporter at BTW media dedicated in Fintech and Blockchain. She graduated from University of California, Davis. Send tips to s.shen@btw.media.

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