The first tokenized warrant transaction is completed with UBS by OSL, one of the two approved cryptocurrency exchanges in Hong Kong.
According to a press release from the company, OSL Digital Securities has completed the first transaction involving the UBS pilot investment-grade tokenized warrant in Hong Kong.
The release stated that the pilot included an equity-linked call warrant token that OSL received from UBS on the Ethereum blockchain. OSL Group’s Chairman and CEO, Patrick Pan, said:
“We are simulating the whole product life cycle of an equity-linked structured product token, from token mint, through simulated secondary market transactions, and finally to token burn at maturity.”
Head of sales at UBS Global Markets Winni Cheuk commented on the transaction, stating that blockchain-issued warrants allow for “more flexible trading hours” by reducing transaction fees and improving transparency.
In an attempt to use blockchain to begin “another new chapter in digital financial product issuance and distribution in Asia, showcasing the transformative potential of this technology,” Pan continued, both organizations intend to increase their focus on blockchain use cases.
OSL, which was founded in 2018, was the first cryptocurrency exchange platform to be granted a trading license for virtual assets by the Securities and Futures Commission of Hong Kong.
The most recent move comes after UBS recently made it possible for wealthy clients in Hong Kong to access three cryptocurrency exchange-traded funds (ETFs), another sign of how digital assets are becoming more and more accepted in conventional financial markets.