UBS issues crypto- and exchange-listed tokenized bonds

UBS joins the camp of crypto-savvy financiers by launching a link connecting the two sectors.

UBS signs alliance between crypto and finance

The traditional finance sector seems to be trusting crypto more and more. While the industry is also looking at its competitor via Binancemore and more financial institutions are getting into blockchain at a time when it seems that investors more dressed up in digital currencies than in banking products.

Financial services company UBS has also followed suit and wants to diversify its offerings by allowing investors to put their money into digital assets. According to its CEO General Ralph Hamers, a soon-to-be user, for example, pour in into gold through a token he could hold in an app. On the stock market side, the Swiss Banking Union just hasDECLARE launching a tokenized bond that will be tradable and exchangeable on the traditional side of finance as well as on the crypto side. For this, the latter will be released on a blockchain platform and on an exchange platform at the same time.

The digital bond has the same instrument structure, legal status and rating as a traditional UBS AG senior unsecured bond, but is the first digital bond from a banking institution in the world to be listed, traded and redeemed on a digital exchange arranged. . Through this connection, UBS enables investors, whether or not they have blockchain infrastructure, topour in in a digital connection.

Excerpt from UBS press release

Towards a wider use of crypto?

Through its use of blockchain, UBS promotes the merits of a technology that enables the rapid issuance and trading of bonds. As for the investments, they would be automatic and immediate. This suggests that if the project is successful, some additional institutions may want to benefit in turn. Recently, JP Morgan made headlines with his first crafts on a public blockchain, more precisely Polygon. Still in the testing phase, these could lead to widespread use of the technology by proving that large sums can be transferred between two identified parties, with little transaction cost.

However, UBS would not be there yet. Despite its pro-blockchain stance, the Swiss Banking Union says it won’t be getting into hard crypto just yet, let alone algorithmic assets. What do we suggest that he will not put his hands on stable coins and that, perhaps, the emission of ia CBDC not yet relevant for Switzerland. Therefore, the grand merger of crypto-banks is not yet a reality, but may become so in the coming years, once all banking institutions have adopted blockchain.

At the moment, this phenomenon is still expanding and, according to Vitalik Buterin, the reluctance of some institutions should be looked at carefully. Indeed, before it can be used on a large scale in finance, the technology as well as crypto will need to mature and strengthen further, otherwise a new crisis could be created.

Source: Vitalik Buterin’s Twitter account


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