UBS launches its first tokenized fund on Ethereum blockchain

UBS Asset Administration, a subsidiary of Zurich-headquartered funding financial institution UBS, has launched its inaugural tokenized fund on the Ethereum blockchain, aiming to increase entry for its shoppers.

In keeping with a Nov. 1 assertion, the brand new product — the “UBS USD Cash Market Funding Fund Token” or “uMINT” — gives shoppers an revolutionary funding answer.

Token holders will achieve entry to UBS Asset Administration’s institutional-grade money administration technique, which makes use of high-quality cash market devices beneath a conservative, risk-managed framework.

Thomas Kaegi, Co-Head of UBS Asset Administration, emphasised that the launch aligns with growing investor curiosity in tokenized property. He commented:

“We now have seen rising investor urge for food for tokenized monetary property throughout asset lessons. By leveraging our international capabilities and collaborating with friends and regulators, we will now present shoppers with an revolutionary answer.”

This launch additionally helps UBS’s broader “UBS Tokenize” initiative, which started in June 2023 by creating absolutely digitally structured notes value CNH 200 million for a third-party issuer. By November, UBS had executed the first-ever cross-border repurchase transaction utilizing a natively issued digital bond on a public blockchain.

UBS Asset Administration mentioned these efforts replicate its ongoing dedication to each private and non-private blockchain networks, enabling it to increase choices like fund issuance and distribution, creating extra streamlined and accessible monetary merchandise.

As of the fourth quarter of 2023, UBS managed $5.7 trillion of its shoppers’ invested property. The corporate operates in additional than 50 markets worldwide.

Fast progress

Tokenization, representing conventional property such because the US Treasury-backed cash market funds on blockchain networks, has gained vital traction amongst established finance corporations, together with BlackRock, over the previous 12 months.

Notably, the US Treasury Division has acknowledged tokenization’s potential to reshape markets, noting that it may enhance effectivity, broaden investor entry, and enhance transparency within the Treasury market.