For the first time ever, UBS has issued tokenized bonds for wealthy clients in Asia Pacific involving multiple jurisdictions.
UBS’s London branch issued $50 million of tokenized debt securities to high net worth individuals and family offices in Hong Kong and Singapore, according to a statement.
The private placement of the six-month US-denominated instruments 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», the bank added.
Rising Demand
The latest issuance is expected to serve as a foundation for further tokenization efforts in APAC where there is rising demand in the region for fixed income investments that can be transacted using blockchain. Moving forward, the Swiss lender plans to explore more transactions, including for third party issuers.
«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 of UBS Global Wealth Management APAC.
In November 2022, UBS priced its inaugural senior unsecured digital bond with 375 million Swiss francs ($405 million) raised for a three-year note.
