• What's Drippin'
  • Posts
  • 🏦 The First Tokenized Warrant: UBS Tokenize, OSL, Xiaomi

🏦 The First Tokenized Warrant: UBS Tokenize, OSL, Xiaomi

🤠 There’s a New Platform in Town: REtokens

Presented By:

Goooood Morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 🏦 The First Tokenized Warrant: UBS Tokenize, OSL, Xiaomi

2️⃣ 🤠 There’s a New Platform in Town: REtokens

Without further ado, it's time to…

Get Liquid 💧

Your First Captivating Topic of the Week

🏦 The First Tokenized Warrant: UBS Tokenize, OSL, Xiaomi

There’s a first time for everything and this week we saw the first tokenized warrant issued via UBS Tokenize, their in-house tokenization platform. The warrant is for Xiaomi stock and it sold to OSL Digital Securities.

Before going further, what’s a warrant?
I gotcha…

Let’s Get Liquid

You’ve probably heard of a call option, which gives you the right to buy shares of stock at a specific price on or before a certain date. Let’s say you have a call option with a strike price of $10 and an expiration date of March 31, 2024. If you notice the stock is trading at $18 on March 30th, you may want to exercise your call option and buy shares at the lower rate of $10 (your strike price), meaning you get them for $8 cheaper per share than everyone else! Good deal!

A call warrant is VERY similar with a few changes. It still gives you the right (not obligation) to buy shares at a strike price but on a specific date, not before. Also, the warrant is typically issued by the company itself, unlike an option which exchanges and others can issue (popular one is Cboe).

Of course, there’s more to it but now that we have the basics down, let’s get dive deeper into this news!

Aside from this being the first tokenized warrant, it’s also natively issued on the Ethereum blockchain, meaning there’s no “analog” version of it. The whole point is that UBS Tokenize and the buyer, OSL Digital Securities, are exploring using blockchain for these kinds of structured products for blockchain’s benefits including accessibility, efficiency (streamlined, cheaper trading and admin processes), and transparency.

We are simulating the whole product life cycle of an equity-linked structured product token, from token mint, through simulated secondary market transactions, and finally to token burn at maturity.

Patrick Pan, Chairman and Chief Executive Officer at OSL Group.

We know UBS has historically been tokenizing multiple assets, although mostly were debt products such as Bank of China International’s (BOCI) 200M CNH structured note which we lightly covered in a previous edition of What’s Drippin’.

Cool to see them expanding the use of their tokenization platform to other types of securities and excited to see what other “firsts” UBS Tokenize leads the charge on!

A Message from TokenizeThis 2024

Tickets are now available for the highly anticipated TokenizeThis 2024 conference, hosted by Security Token Market!

Mark your calendars for May 9-11, 2024, as this conference promises to be an unforgettable experience in…

You guessed it….

The vibrant city of Miami, FL! 🌴

Boasting a diverse array of industry experts as speakers, thought-provoking panels, and an immersive workshop, the conference offers an in-depth exploration of the ever-evolving tokenization landscape.

Some of the 50+ speakers at TokenizeThis 2023 included executives from Onyx by JP Morgan, WisdomTree Prime, Franklin Templeton Digital Assets, Oasis Pro, Securitize, Centrifuge, Maple Finance, Ava Labs, Polygon, Provenance and many more.

Your Second Captivating Topic of the Week

🤠 There’s a New Platform in Town: REtokens

As tokenization continues to grow its spotlight as the next evolution of capital markets, we are seeing new platforms providing services that support it. Some are industry-agnostic and others leverage their previous lives to curate a platform towards a specific sector. In the case of real estate, we have a new player and its REtokens.

Led by Tyler Vinson and David Kirschbaum, REtokens just announced their new, proprietary capital platform to support real estate projects. The founders have 20+ years of experience in the real estate investment space and are using that to create REtokens, meant for both institutional and private equity syndicators.

REtokens stands at the forefront of real estate investment, reshaping the landscape with our deep understanding of what Sponsors and Syndicators truly need.

Tyler Vinson, CEO of REtokens USA Inc.

Rather than only onboarding $50M+ properties, REtokens is looking to bring that down to just $1M. Blockchain makes this a lot easier to achieve considering a lot of the process that demands higher investment minimums is a lot more streamlined. The benefits of course would include a lower barrier to entry for individuals and syndicates, more granular allocations for institutions, and higher potential for liquidity for both.

They’re also eating their own dog food! REtokens is tokenizing their own equity and is accessible to accredited investors at just a $5,000 minimum. This offering is already live and over 50% committed.

Want to learn more? We’ll be hosting Tyler and David this Wednesday, February 14th at 12pm EST on Security Token Prime, covering the platform launch, this offering, and more. It’s FREE to sign up today and enjoy all the other Security Token Prime benefits while you’re at it!

💦 What else is Drippin’

Security Token Prime

This is a packed week of FREE events on Security Token Prime

Security Token Prime was born to help the industry's participants benefit from the expertise of both Security Token Advisors and Security Token Market.

One of the perks of being a member is access to special programming, which this week boasts 3 great ones to attend. Click on any event’s image to learn more and sign up!

Join Maple, Centrifuge, and Swarm in exploring the bridging of traditional finance with the power of DeFi through blockchain technology. Themes will include lending & borrowing, cash management & treasuries, and institutional applications.

There's a new platform in town! Tyler Vinson and David Kirschbaum just announced REtokens is launching their new, proprietary capital platform designed to transform how equity is accessed in real estate projects.

The SEC just posted a broadened definition of a dealer which may have impacts on the DeFi space, essentially requiring platforms to register and join a self-regulatory organization (like FINRA). What exactly are the specifics? How is DeFi affected?


State of Security Tokens 2023 - Q3 Report

The Security Token Advisors State of Security Tokens 2023 - Q3 report is brought to you by Security Token Market!

Shared through CoinDesk’s Crypto Long & Short, Peter Gaffney dives deep with updates from across the industry, from issuers to platforms to protocols. Take a read for analysis on common themes emerging for both primary and secondary markets!

This is not financial or investment advice.

TokenizeThis: Highlights and Key Takeaways Report

We’re proud to have put together a free, 3-day event that resulted in shared insights valuable to both our retail and institutional audiences. That said, we recognize 3 days is a lot of content to take in so we did it for you!

Check out our report highlighting the key takeaways from the conference, quotes, and common themes across the panels.

Do you want your company or project in front of the largest, most curated security token audience on the planet?

If interested, please reach out to [email protected] to find out a way we can work together :)

Everything in this newsletter is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this newsletter should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.