UBS Launches Hong Kong’s First Investment Grade Tokenized Warrant on ETH Blockchain
UBS AG has announced Hong Kong’s first investment-grade tokenized order on the Ethereum public blockchain network. The groundbreaking product, which includes a call warrant with Xiaomi Corporation as the underlying stock, marks a significant milestone in the field of digital finance.
Powered by UBS tokenize, the bank’s proprietary tokenization service, the offering promises greater transparency, reduced transaction fees, streamlined payment processes and extended trading hours. UBS Global Markets APAC Public Distribution Sales Manager Winni Cheuk emphasizes the importance of this advancement, citing the numerous benefits it provides to investors.
Collaboration with OSL Digital Securities Limited Signals a Major Milestone
OSL Digital Securities Limited, a licensed virtual asset platform operator and a subsidiary of OSL Group, has successfully acquired the tokenized order, strengthening a significant collaboration in the digital asset space.
Patrick Pan, Chairman and CEO of OSL Group, expressed his satisfaction with the partnership, highlighting its impact on Hong Kong’s regulated virtual asset environment. The collaboration marks significant progress in the industry, reflecting the growing importance of tokenization in financial markets.
Additionally, this partnership marks a significant leap forward in simulating the entire product lifecycle of an equity-linked structured product token, from token issuance to burning at maturity.
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Advantages and Future Developments of Tokenized Warrants
Tokenized warrants offer several advantages and a promising outlook for digital finance investors. Leveraging blockchain technology, tokenization creates new opportunities for access to digitally structured products, expanding accessibility for investors and enabling longer trading hours. Smart contracts associated with tokenized warrants streamline processes and reduce transaction costs, offering efficiency gains over traditional channels.
Additionally, blockchain technology ensures transparency and increases trust and accountability in the investment process, as all transactions and ownership records are securely stored on a decentralized ledger. UBS’s commitment to advancing tokenization services underscores ongoing efforts to build institutional-grade infrastructure for tokenized assets. Focusing on creation, distribution and custody, UBS aims to pave the way for widespread adoption of tokenized assets in the financial environment.
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