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.