ZURICH (Reuters) – UBS AG has launched a 375 million Swiss franc ($370 million) bond that the Swiss financial institution mentioned on Thursday was the world’s first digital bond to be publicly traded and settled on each blockchain-based and conventional exchanges.
The three-year bond with a 2.33% coupon can be issued on the blockchain-based platform of SIX Digital Change (SDX) and dual-listed on SDX and the SIX Swiss Change.
The digital bond has the identical authorized standing and score as a standard UBS AG senior unsecured word, it mentioned in a press release.
“We’re proud to leverage distributed ledger know-how to launch the inaugural UBS digital bond. This reveals our dedication to assist the event of latest monetary market infrastructure,” UBS Treasurer Beatriz Martin mentioned.
The digital bond settles through the SDX distributed ledger-based central securities depository (CSD) community. Settlement is immediate and automated and doesn’t require a central clearing counterparty, UBS mentioned.
Buyers can settle and clear the digital bond on both SDX CSD immediately or on SIX through an operational hyperlink introduced final month.
The European Funding Financial institution final 12 months issued its first digital bond on a public blockchain.
($1 = 1.0132 Swiss francs)
(Reporting by Michael Shields; Enhancing by Kirsten Donovan)