Swiss multinational financial institution UBS’ Hong Kong subsidiary, has tokenized an funding warrant on the Ethereum blockchain along with cryptocurrency alternate OSL.
Based on the Feb. 7 announcement, the tokenized product is an choices name warrant with Chinese language smartphone large Xiaomi Company because the underlying inventory. After tokenization, the digital asset was then offered to the OSL Trade.
“We’re simulating the entire product life cycle of an equity-linked structured product token, from token mint, by way of simulated secondary market transactions, and at last to token burn at maturity,” commented OSL CEO Patrick Pan. In the meantime, Winni Cheuk, head of gross sales at UBS International Markets, mentioned that the novel product “enhances transparency, reduces transaction charges, streamlines settlement processes, and permits for extra versatile buying and selling hours.”
UBS builders wrote that the tokenization of monetary derivatives has a number of notable benefits, particularly creating new accessibility channels, growing effectivity, and offering transparency by way of the immutable blockchain ledger. “Tokenized warrants make the most of good contracts that enable automation, streamline buying and selling and administrative processes, and decrease dealing with prices,” builders famous.
UBS has been conducting ongoing analysis on asset tokenization since 2015. In 2022, the agency issued a $50 million tokenized fastened charge be aware offered to its Asia Pacific shoppers by way of the UBS Tokenize platform.
On June 12, 2023, UBS facilitated the issuance of 200 million Chinese language yuan ($28 million) price of digital structured notes minted on the Ethereum blockchain in Hong Kong. Equally, OSL CEO Patrick Pan informed Cointelegraph in an interview final month that the agency is at present exploring a Fund Token initiative for the tokenization of retail fund merchandise.
Associated: Swiss financial institution UBS launches tokenized cash market fund on Ethereum