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One of the two Hong Kong-licensed crypto exchanges, OSL, finalizes first tokenized collateral transaction with UBS.
OSL Digital Securities has completed the first transaction involving UBS's pilot investment-grade tokenized collateral in Hong Kong, the company said in a Press release. According to the announcement, the pilot included an equity-linked purchase collateral token issued on the ethereum blockchain by UBS to OSL.
“We are simulating the entire product lifecycle of an equity-linked structured product token, from token minting, through simulated secondary market transactions, and finally to token burning at expiration.”
Patrick Pan, President and CEO of OSL Group.
Commenting on the transaction, Winni Cheuk, head of sales at UBS Global Markets, said blockchain-issued warrants improve transparency and reduce transaction fees, allowing for “more flexible trading hours.”
Pan added that both companies plan to double down on use cases for blockchain technologies in an effort to leverage blockchain to open “another new chapter in the issuance and distribution of digital financial products in Asia, showcasing the transformative potential of this technology.”
Established in 2018, OSL was the first crypto exchange platform to receive a virtual asset trading license from the Hong Kong Securities and Futures Commission. The latest development follows UBS's recent initiative to allow wealthy Hong Kong clients access to three crypto exchange-traded funds (ETFs), further indicating the growing acceptance of digital assets in traditional financial markets.
