The Swiss investment bank, UBS AG, has launched a digital bond that is settled on Ethereum and accessible through traditional exchanges. The platform also supports the issuance of up to $1 trillion worth of tokenized bonds, according to a press release published recently.
UBS AG, a global financial services company, has conducted its first settlement of a digital bond on Ethereum (ETH) through its own private permissioned version of the blockchain.
The UBS Blockchain Platform reportedly supports the issuance of up to $1 trillion worth of tokenized bonds and allows borrowers and investors to transact directly with one another on a “secure distributed ledger.” The platform’s first use case is a $100 million tokenized bond that was issued by blockchain startup Symbiont and transferred from borrower BNY Mellon to investor Deutsche Bank via UBS.
UBS AG, a global financial services company based in Switzerland and publically traded on the SIX Swiss Exchange, has conducted its first settlement of a digital bond on Ethereum (ETH) through its own private permissioned version of the blockchain.
UBS AG Looking To Go Forward
You may be wondering, how exactly does the bond work? The platform allows users to access information about smart contracts on Ethereum public blockchain using an open-source multi-chain portal. To explain this further, let’s go back to the example of UBS’ digital bond:
- The issuer knows who owns their bonds and can see the transaction history for each of them.
- The buyer can also verify ownership and track transactions within the private permissioned version of the blockchain.
You may remember that in March, we reported on another major Swiss bank, Credit Suisse, partnering with fintech giant Sygnum to launch a digital asset trading platform. The platform will allow institutional investors to trade cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) on the traditional stock exchange. The platform aims to provide proper custody solutions for digital assets and enable access to regulated crypto-focused investment funds.
According to today’s press release from UBS AG, its new product will be available via traditional exchanges too but only as part of its existing program called “Swiss Digital Bond.”
