UBS Hong Kong offers securities on Ethereum with OSL
The Hong Kong subsidiary of Swiss multinational bank UBS has simulated an investment warrant on the Ethereum blockchain with cryptocurrency exchange OSL.
In the year According to the February 7 announcement, the tokenized product is a call warrant of an option on shares of Chinese smartphone giant Xiaomi Corp. After tokenization, the digital asset is sold to the OSL exchange.
OSL CEO Patrick Pan said, “We will build an equity-linked structured product token that covers the entire product lifecycle from token minting, through simulated secondary market transactions, and finally to tokenization.” Meanwhile, UBS Global Markets Head of Sales Winnie Cheek said the novel product “increases transparency, reduces transaction fees, streamlines settlement processes and allows for more flexible trading hours.”
UBS writes that tokenizing financial derivatives has several important benefits; These include creating new access channels, increasing efficiency and providing transparency through an immutable blockchain ledger. “Tokenized securities use smart contracts that allow automation, facilitate transaction and administrative processes; [and] Low handling cost,” the ad said.
UBS has been conducting ongoing research on property tokenization since 2015. In 2022, the firm issued a $50 million fixed rate note that was sold through the UBS Tokenize platform to its Asia Pacific clients.
On June 12, 2023, UBS facilitated the issuance of 200 million Chinese Yuan ($28 million) worth of digitally structured notes on the Ethereum blockchain in Hong Kong. Similarly, OSL CEO Patrick Pan told Cointelegraph in an interview last month that the company is currently exploring a fund token initiative to introduce retail fund products.
Related: Swiss bank UBS launches tokenized money market fund on Ethereum
