UBS has introduced a CHF 375 million digital bond that is publicly traded and settled on both traditional and blockchain-based exchanges.
The Swiss lender claims this is the first-ever digital bond issued by a banking institution globally to be listed, traded, and settled on a regulated digital exchange, specifically the SIX Digital Exchange (SDX). The bond utilizes SDX’s distributed ledger technology for settlement through atomic settlement, which allows for instant and automatic processing without the need for a central clearing counterparty.
Additionally, the bond will also be listed and traded on the conventional SIX Swiss Exchange.
Beatriz Martin, UBS group treasurer, commented, “We are proud to leverage distributed ledger technology to launch the inaugural UBS digital bond. This demonstrates our commitment to supporting the development of new financial market infrastructure.”