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UBS AG Introduced A New Digital Bond To Be Traded And Settled On The Blockchain

The new digital bond was unveiled by investment bank UBS AG. According to the bank, it is the first-ever to be openly traded and settled on blockchain-based and conventional markets.

UBS AG Introduced A New Digital Bond To Be Traded And Settled On The Blockchain 2

A three-year, $272 million senior unsecured digital bond issued by UBS AG has a coupon of 2.33% and is denominated in 375 million Swiss francs. The bank will list the digital bond on the SIX Swiss Exchange and SDX Trading. Along with other senior unsecured notes issued by UBS AG, it will be eligible for inclusion in the Swiss Bond Index.

According to a press statement from the bank, the digital bond has the same investment structure, legal position, and rating as a conventional senior unsecured note.

By employing atomic settlement technology and the distributed ledger-based central securities depository network of SIX Digital Exchange, the digital bond settles quickly and automatically. According to the bank, the settlement does not require a central clearing counterparty.

“Settlement via SDX CSD is instant and automatic and does not require a central clearing counterparty. Investors will have the ability to automatically settle and clear the UBS digital bond on either SDX CSD directly or on SIX SIS via the operational link which was formally announced on 3rd October 2022.”

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.