UBS and OSL Collaborate to Introduce Hong Kong’s First Investment-Grade Tokenized Warrant

Bits Logics Team . 10th Feb 2024

• UBS and OSL Digital Securities have joined forces to pioneer the region’s inaugural investment-grade tokenized warrant.
• The investment-grade tokenized warrant aims to enhance transparency, reduce transaction fees, and streamline settlement processes.
• The partners aim to open new avenues for digital financial product issuance and distribution in Asia.

In a significant development for Hong Kong’s digital asset landscape, UBS and OSL Digital Securities have joined forces to pioneer the region’s inaugural investment-grade tokenized warrant. This groundbreaking initiative marks a significant milestone in the integration of blockchain technology within traditional financial products.

The collaboration between OSL, a subsidiary of OSL Group, and UBS, a global leader in financial services, underscores the commitment to innovation and advancement within the digital asset space. The investment-grade tokenised warrant, issued on the Ethereum-based public blockchain by UBS AG to OSL, represents a concerted effort to enhance transparency, reduce transaction fees, and streamline settlement processes.

Patrick Pan, Chairman and Chief Executive Officer at OSL Group, expressed pride in the partnership with UBS and emphasized the importance of setting new standards in the digital asset market. Pan highlighted the simulation of the entire product life cycle, from token minting to eventual burn at maturity, as a testament to Hong Kong’s evolving regulatory landscape and the potential of blockchain technology.

Winni Cheuk, Head of Sales, APAC Public Distribution at UBS Global Markets, emphasized the bank’s commitment to innovation and its position as a leading derivative products issuer in Hong Kong. 

Cheuk underscored the benefits of tokenisation, including increased transparency and flexibility in trading hours, as key drivers behind the introduction of the UBS tokenised warrant.

The collaboration between OSL and UBS represents a significant step forward in bringing sophisticated financial products to market, while also serving as a real-world demonstration of blockchain technology’s transformative potential. By leveraging blockchain, the partners aim to open new avenues for digital financial product issuance and distribution in Asia.

This initiative not only signifies a milestone for OSL but also reinforces the importance of industry-wide collaboration and pushing the boundaries of what is achievable in the digital asset space. With a focus on innovation and compliance, the collaboration between UBS and OSL sets the stage for further advancements in Hong Kong’s digital asset ecosystem.