Zurich - UBS has become the first bank in the world to issue an exchange-traded digital bond. At the same time, it is also the world’s first public benchmark bond that investors can access in both digital and traditional markets.

UBS issues first inaugural digital bond worldwide
Image: UBS

On November 3, UBS AG became the first banking institution in the world to issue a digital bond that will be listed, traded and settled on a regulated digital exchange. The senior unsecured digital bond in the amount of 375 million Swiss francs features a coupon of 2.33 percent and a term to maturity of three years. It will be eligible for the Swiss Bond Index (SBI).

According to a press release issued by UBS, this is the first digital bond to be traded and settled on both blockchain-based and traditional exchanges. It is being issued on the SIX Digital Exchange and will be dual-listed there in addition to the SIX Swiss Exchange. With this bond, the Swiss bank allows investors to invest in a digital bond irrespective of whether they have the requisite blockchain infrastructure.

“We are proud to leverage distributed ledger technology to launch the inaugural UBS digital bond”, comments Beatriz Martin, UBS Group Treasurer, in the press release, before adding: “This shows our commitment to support the development of new financial market infrastructure”.

Fintech & Blockchain in the Greater Zurich Area

Fintech & Blockchain in the Greater Zurich Area

The Greater Zurich Area has evolved into a global fintech and blockchain hub, thanks to factors like access to talent, leading research institutes, innovation-friendly regulators, investors and industry partners. Switzerland, and particularly Crypto Valley in the Greater Zurich Area, has been at the forefront of digitization and disruptive technologies, and start-ups in the area have access to a variety of incubators and accelerators that support them in establishing a company and developing ideas and products.

Fintech Greater Zurich Area