OSL completes first transaction of tokenized UBS warrant on Ethereum

One of Hong Kong’s two licensed crypto exchanges, OSL, finalizes the first tokenized warrant transaction with UBS.

OSL Digital Securities has completed the first transaction involving the UBS pilot investment-grade tokenized warrant in Hong Kong, the company said in a press release. According to the announcement, the pilot featured an equity-linked call warrant token issued on the Ethereum blockchain by UBS to OSL.

“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.”

Patrick Pan, Chairman and CEO at OSL Group.

Commenting on the transaction, Winni Cheuk, head of sales at UBS Global Markets, said that blockchain-issued warrants enhance transparency as well as reduce transaction fees, allowing for “more flexible trading hours.”

Pan added that both companies are planning to double down on use cases of blockchain technologies in an effort to leverage blockchain to open “another new chapter in digital financial product issuance and distribution in Asia, showcasing the transformative potential of this technology.”

Established in 2018, OSL was the first crypto exchange platform to receive a virtual asset trading license from Hong Kong’s Securities and Futures Commission. The latest development follows UBS’s recent initiative to allow wealthy clients in Hong Kong to access three crypto exchange-traded funds (ETFs), further indicating the growing acceptance of digital assets in traditional financial markets.