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 purchasers.
In accordance with a Nov. 1 assertion, the brand new product — the “UBS USD Cash Market Funding Fund Token” or “uMINT” — presents purchasers an revolutionary funding answer.
Token holders will acquire 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 belongings. He commented:
“We’ve seen rising investor urge for food for tokenized monetary belongings throughout asset lessons. By leveraging our international capabilities and collaborating with friends and regulators, we are able to now present purchasers with an revolutionary answer.”
This launch additionally helps UBS’s broader “UBS Tokenize” initiative, which started in June 2023 by creating totally digitally structured notes price 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 mirror 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 purchasers’ invested belongings. The corporate operates in additional than 50 markets worldwide.
Fast progress
Tokenization, representing conventional belongings 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 might increase effectivity, broaden investor entry, and enhance transparency within the Treasury market.
