Swiss banking giant UBS has partnered with cryptocurrency exchange OSL to launch Hong Kong’s first investment-grade tokenized warrant. The product is a call warrant with Chinese tech firm Xiaomi as the underlying stock.
The tokenized warrant utilizes UBS’ in-house tokenization platform, UBS Tokenize. It was made on the public Ethereum blockchain before being sold to OSL Digital Securities, a licensed crypto exchange subsidiary of OSL Group.
According to UBS and OSL, the digital warrant enhances transparency via its recording on a decentralized ledger. It also streamlines processes through automation from smart contracts, cuts fees, and enables 24/7 trading.
UBS Head of Sales Winni Cheuk stated the bank is reinforcing its position as Hong Kong’s top structured products issuer. OSL CEO Patrick Pan said the project marks a significant milestone for Hong Kong’s regulated crypto asset industry.
Moreover, UBS has pioneered blockchain technology and tokenization services since 2015. Last year, it issued a $50 million tokenized bond sold to Asia Pacific investors on UBS Tokenize. The bank focuses its digital asset efforts on institutional-grade infrastructure for tokenized assets across origination, distribution, and custody.
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