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UBS closes tokenised debt transaction

The transaction is among the first ever global blockchain-based transactions involving multiple jurisdictions, UBS said.
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UBS has closed a tokenised debt transaction involving wealth management clients from Hong Kong and Singapore.

UBS’ London branch issued $50m in digital securities using blockchain technology to a series of high net worth and global family and institutional wealth investors. The US dollar-denominated instruments carry a tenor of six months.

UBS said that the private placement marks the first time that uncertified securities on a blockchain have been constituted under English and Swiss law and tokenised on a permissioned Ethereum-based blockchain.

They are also among the first ever global blockchain-based transactions involving multiple jurisdictions.

“This transaction is the first step in an exciting journey in offering blockchain-based products to regional investors and it underlines UBS’ ability to expand digital investment opportunities for our clients” said August Hatecke, co-head of UBS Global Wealth Management for Asia Pacific.

In November 2022, UBS priced its inaugural senior unsecured digital bond, which comprised SFr375m ($402m) in three-year digital bonds.

Part of the Mark Allen Group.