UBS has closed the first tokenized debt transaction for Asia Pacific investors, underlining its commitment to expand regional investment opportunities.
UBS AG London branch issued USD 50 million in digital fixed rate security tokens (‘digital securities’) using blockchain technology to a series of high net worth and global family and institutional wealth investors across Hong Kong and Singapore. The US dollar-denominated instruments carry a tenor of 6 months and are tokenized on a permissioned blockchain.
The private placement marks the first time that uncertificated securities on a blockchain have been constituted under English and Swiss law, and tokenized on a permissioned Ethereum-based blockchain. They are among the first ever global blockchain-based transactions involving multiple jurisdictions. UBS designed the transaction to satisfy a rising demand among Asian investors for fixed income investments that can be transacted using blockchain, a new disruptive technology that can make issuing securities more efficient, while enabling new product innovations.
August Hatecke
“This transaction is the first step in an exciting journey in offering blockchain-based products to regional investors, and it underlines UBS’s ability to expand digital investment opportunities for our clients”
said August Hatecke, Co-Head UBS Global Wealth Management APAC.
Amy Lo
“We registered strong interest for this inaugural issue from regional high net worth individuals and family offices, which underscores their interest in digital securities”
added Amy Lo, Co-Head UBS Global Wealth Management APAC.
UBS Group intends to explore further transactions including for third-party issuers. This will maintain a growing pipeline of digital security deal flow from the financial institution. In November 2022, UBS Group priced its inaugural senior unsecured digital bond, which comprised CHF 375 million in three-year digital bonds.
Featured image credit: edited from Freepik
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