UBS has introduced Hong Kong’s first investment-grade tokenized warrant on the Ethereum public blockchain network.
The product, utilizing the on-chain issuance framework provided by UBS Tokenize, is a call warrant with Xiaomi Corporation as the underlying asset. Marketed by the bank as the “first natively issued warrant on a public blockchain,” the warrant was sold to OSL Digital Securities Limited, a licensed operator of virtual asset platforms.
Winni Cheuk, head of sales for public distribution in the APAC region at UBS Global Markets, stated: “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.”
UBS Tokenize is part of the Swiss bank’s continued efforts in tokenization services and distributed ledger technology. It facilitates opportunities across origination, distribution, and custody, with an initial focus on tokenizing bonds, funds, and structured products. In 2022, the bank leveraged this platform to issue the first-ever $50 million tokenized fixed-rate note sold to clients in the Asia Pacific region.