Swiss Leading Bank Collaborates With OSL To Launch New Products In Hong Kong!

JAKARTA - UBS, a Swiss banking giant, is working with OSL Digital Securities, a digital asset platform registered in Hong Kong, to launch Hong Kong's first investment-graded tokened financial product. The product is the right to purchase shares aka callrants related to equity issued on Ethereum-based public blockchain.

Warrant is a derivative product of the capital market that gives its holders the right to buy shares at a price that has been determined by publishers for a certain period of time. Warrants are warrants issued in the form of digital tokens that can be transacted on digital asset platforms.

Tokenizedrants have several benefits, such as increasing transparency, reducing transaction costs, simplifying settlement processes, and enabling more flexible trading time. In addition, tokenizedrants can also provide wider access to investors, especially in the fast-growing digital asset market.

However, tokenized warrants also have challenges, such as compliance with regulations, data security, and market education. Therefore, cooperation is needed between the parties involved, such as publishers, platforms, regulators, and investors, to ensure that these products can run well and safely.

UBS And OSL Collaboration In The Trial Project

In a trial project conducted on February 7, UBS issued a call warrant token related to equity on the Ethereum-based public blockchain to OSL. OSL then simulated the entire life cycle of the product, ranging from token creation, through secondary market transactions, to token burning when it matures.

This initiative is expected to change the digital asset landscape in Hong Kong, which is one of the global financial hubs. Patrick Pan, Chairman and CEO of the OSL Group, said its organizational participation was another significant milestone for the digital asset sector in Hong Kong.

"We simulate the entire lifecycle of products from equity-related structure tokens, ranging from token creation, through simulated secondary market transactions, to burning tokens at maturity. The virtual asset landscape set in Hong Kong has just reached another major milestone with the issuance of tokenized financial products with this investment rating," Pan said.

Meanwhile, Winani Cheuk, head of sales for UBS Global Markets, said the introduction of a tokenized warrant confirmed the Swiss banking giant's reputation as one of Hong Kong's leading derivative product publishers.

Regarding the product itself, Cheuk said that it "enhanced transparency, reduced transaction costs, simplifyed the settlement process, and allowed more flexible trading time."