UBS launches its first tokenized fund on Ethereum blockchain

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

In response to a message from November 1 statementthe brand new product – the “UBS USD Cash Market Funding Fund Token” or “uMINT” – affords clients an modern funding resolution.

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

Thomas Kaegi, co-head of UBS Asset Administration, emphasised that the launch is in keeping with rising investor curiosity in tokenized belongings. He famous:

“We’ve got seen rising investor curiosity in tokenized monetary belongings throughout all asset courses. By leveraging our world capabilities and dealing with colleagues and regulators, we will now provide clients an modern resolution.”

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

UBS Asset Administration stated these efforts mirror its continued dedication to each private and non-private blockchain networks, which may develop choices such because the issuance and distribution of funds, creating extra streamlined and accessible monetary merchandise.

As of the fourth quarter of 2023, UBS managed $5.7 trillion in invested belongings for its shoppers. The corporate is lively in additional than 50 markets worldwide.

Speedy progress

Tokenization, which represents conventional belongings such because the U.S. Treasury-backed cash market funds on blockchain networks, has gained important traction over the previous 12 months amongst established monetary corporations, together with BlackRock.

The U.S. Treasury Division specifically has acknowledged tokenization’s potential to reshape markets, noting that it may enhance effectivity, broaden investor entry, and enhance transparency within the authorities bond market.