Swiss bank UBS launches tokenized money market fund on Ethereum

Leading Swiss slope UBS has launched a unrecorded aviator of a tokenized mentation of its adaptable superior institution (VCC) money arsenic portion of Project Guardian, an inaugural led by Singapore’s cardinal bank. 

In a property release, UBS Asset Management announced that the money is portion of a broader VCC umbrella designed to bring antithetic types of real-world assets (RWA) to the blockchain. According to Thomas Kaegi, the caput of UBS Asset Management for Singapore and Southeast Asia, the task is simply a milestone successful knowing funds tokenization. Kaegi said:

“Through this exploratory initiative, we volition enactment with accepted fiscal institutions and fintech providers to assistance recognize however to amended marketplace liquidity and marketplace entree for clients.”

UBS Asset Management launched the controlled aviator of the tokenized wealth marketplace money done the company’s in-house tokenization work called UBS Tokenize. Using a astute declaration connected Ethereum, the steadfast carried retired assorted activities, including redemptions and money subscriptions.

The aviator is besides a portion of the company’s planetary distributed ledger exertion strategy, which focuses connected utilizing backstage and nationalist blockchains to heighten money organisation and issuance.

Related: Singapore commits $112M to enactment fintech solutions similar Web3

The caller improvement realizes erstwhile predictions connected the tokenization of RWAs. In a sheet treatment astatine the World Token Summit 2023, United Arab Emirates authorities advisor Ellis Wang told Cointelegraph that tokenization of RWAs gives assorted advantages similar transparency and security, which are features embedded into blockchains. According to the executive, the tokenization of RWAs whitethorn drawback on, arsenic it presents important opportunities for galore industries.

Earlier this year, protocols focusing connected RWAs became a blistery taxable arsenic they outperformed different subsectors of decentralized finance. On June 9, token gains of RWA tokenization level Centrifuge had surged by 32% year-to-date.

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