UBS launches its first tokenized fund on Ethereum blockchain

UBS Asset Management, a subsidiary of Zurich-headquartered concern slope UBS, has launched its inaugural tokenized money connected the Ethereum blockchain, aiming to grow entree for its clients.

According to a Nov. 1 statement, the caller merchandise — the “UBS USD Money Market Investment Fund Token” oregon “uMINT” — offers clients an innovative concern solution.

Token holders volition summation entree to UBS Asset Management’s institutional-grade currency absorption strategy, which utilizes high-quality wealth marketplace instruments nether a conservative, risk-managed framework.

Thomas Kaegi, Co-Head of UBS Asset Management, emphasized that the motorboat aligns with expanding capitalist involvement successful tokenized assets. He commented:

“We person seen increasing capitalist appetite for tokenized fiscal assets crossed plus classes. Through leveraging our planetary capabilities and collaborating with peers and regulators, we tin present supply clients with an innovative solution.”

This motorboat besides supports UBS’s broader “UBS Tokenize” initiative, which began successful June 2023 by creating afloat digitally structured notes worthy CNH 200 cardinal for a third-party issuer. By November, UBS had executed the first-ever cross-border repurchase transaction utilizing a natively issued integer enslaved connected a nationalist blockchain.

UBS Asset Management said these efforts bespeak its ongoing committedness to some nationalist and backstage blockchain networks, enabling it to grow offerings similar money issuance and distribution, creating much streamlined and accessible fiscal products.

As of the 4th fourth of 2023, UBS managed $5.7 trillion of its clients’ invested assets. The institution operates successful much than 50 markets worldwide.

Rapid growth

Tokenization, representing accepted assets specified arsenic the US Treasury-backed wealth marketplace funds connected blockchain networks, has gained important traction among established concern firms, including BlackRock, implicit the past year.

Notably, the US Treasury Department has acknowledged tokenization’s imaginable to reshape markets, noting that it could boost efficiency, broaden capitalist access, and summation transparency successful the Treasury market.

The station UBS launches its archetypal tokenized money connected Ethereum blockchain appeared archetypal connected CryptoSlate.