UBS AG has unveiled Hong Kong’s first investment-grade tokenized warrant on the Ethereum public blockchain network. The groundbreaking product, with a call warrant with Xiaomi Corporation as underlying shares, marks an important milestone in the field of digital finance.
Powered by UBS Tokenize, the bank’s proprietary tokenization service, this offering promises improved transparency, lower transaction fees, streamlined settlement processes and extended trading hours. Winni Cheuk, Head of Sales, APAC Public Distribution at UBS Global Markets, emphasizes the importance of this progress and cites the numerous benefits for investors.
Collaboration with OSL Digital Securities Limited marks an important milestone
OSL Digital Securities Limited, a licensed virtual asset platform operator and a subsidiary of OSL Group, has successfully acquired the tokenized warrant, strengthening a crucial partnership in the digital assets space.
Patrick Pan, Chairman and CEO of OSL Group, expresses his satisfaction with the partnership and highlights its implications for the regulated virtual asset landscape in Hong Kong. The collaboration marks a remarkable advancement in the industry and reflects the growing importance of tokenization in financial markets.
Furthermore, this partnership marks a substantial leap forward in simulating the full product lifecycle of an equity-linked structured product token, from token minting to eventual burning at maturity.
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Benefits and future developments of tokenized warrants
Tokenized warrants offer several benefits and promising prospects for digital finance investors. Using blockchain technology, tokenization creates new opportunities for access to digital structured products, increasing accessibility for investors and enabling longer trading hours. Smart contracts associated with tokenized warrants streamline processes and reduce fulfillment costs, delivering efficiency gains compared to conventional channels.
Additionally, blockchain technology ensures transparency as all transactions and ownership data are securely stored on a decentralized ledger, increasing trust and accountability in the investment process. UBS’s commitment to advancing tokenization services underlines its ongoing efforts to establish an institutional infrastructure for tokenized assets. With a focus on origination, distribution and custody, UBS aims to pave the way for the widespread adoption of tokenized assets across the financial landscape.
