Utilizing UBS Tokenize's on-chain issuance product platform, the product is a call warrant with Xiaomi Corporation's stock serving as the underlying asset. The warrant was sold to OSL Digital Securities Limited, a licensed operator of virtual asset platforms, and was billed by the bank as the "first natively issued warrant on a public blockchain".

"Created natively on a public blockchain in a permissioned environment, this innovative product enhances transparency, reduces transaction fees, streamlines settlement processes, and allows for more flexible trading hours," states Winni Cheuk, head of sales, Apac public distribution, UBS Global Markets.

UBS Tokenize is a component of the Swiss bank's continuous efforts in distributed ledger technology and tokenization services. At launch, it focuses on tokenization of bonds, funds, and structured products, but it also supports opportunities across origination, distribution, and custody. The bank issued the first-ever $50 million tokenized fixed rate note to be sold to clients in Asia Pacific in 2022 via the platform.