UBS Asset Administration, a subsidiary of Zurich-headquartered funding financial institution UBS, has launched its inaugural tokenized fund on the Ethereum blockchain, aiming to broaden entry for its purchasers.
In keeping with a Nov. 1 assertion, the brand new product — the “UBS USD Money Market Investment Fund Token” or “uMINT” — presents purchasers an progressive funding resolution.
Token holders will acquire entry to UBS Asset Administration’s institutional-grade money administration technique, which makes use of high-quality cash market devices below a conservative, risk-managed framework.
Thomas Kaegi, Co-Head of UBS Asset Administration, emphasised that the launch aligns with growing investor curiosity in tokenized belongings. He commented:
“We have seen growing investor appetite for tokenized financial assets across asset classes. Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.”
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 broaden 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 purchasers’ invested belongings. The corporate operates in additional than 50 markets worldwide.
Speedy progress
Tokenization, representing conventional belongings such because the US Treasury-backed cash market funds on blockchain networks, has gained important traction amongst established finance corporations, together with BlackRock, over the previous yr.
Notably, the US Treasury Division has acknowledged tokenization’s potential to reshape markets, noting that it may increase effectivity, broaden investor entry, and improve transparency within the Treasury market.
