UBS has launched a CHF375 million digital bond that’s publicly traded and settled on each conventional and blockchain-based exchanges.
The Swiss lender says that is the primary ever digital bond by a banking establishment globally that can be listed, traded and settled on a regulated digital trade – SIX Digital Trade (SDX).
The bond settles by way of SDX distributed ledger-based central securities depository community via atomic settlement expertise. Settlement is immediate and automated and doesn’t require a central clearing counterparty, says UBS.
The bond may even be listed and traded on the standard SIX Swiss Trade.
Beatriz Martin, UBS group treasurer, says: “We’re proud to leverage distributed ledger expertise to launch the inaugural UBS digital bond. This reveals our dedication to assist the event of latest monetary market infrastructure.”