UBS launches tokenized treasury fund on Ethereum

Key Takeaways

UBS Asset Administration launched its first tokenized fund on the Ethereum blockchain.
The financial institution manages $5.7 trillion in property and goals to fulfill rising investor demand for tokenized monetary property.

UBS Asset Administration introduced right this moment the launch of its first tokenized fund, the “UBS USD Cash Market Funding Fund Token” (uMINT), on Ethereum’s blockchain.

UBS, managing 5.7 trillion {dollars} in property, will enable traders entry to a high-quality, risk-managed cash market funding product by means of licensed distribution companions.

Thomas Kaegi, Co-Head of UBS Asset Administration APAC, commented on the shift, saying,

“We have now seen rising investor urge for food for tokenized monetary property throughout asset lessons.”

Kaegi underscored UBS’s dedication to digital finance, citing the financial institution’s work with regulators and business companions to broaden their product choices on this house.

The uMINT fund is part of UBS’s bigger blockchain technique, which incorporates different tokenization milestones.

In November 2023, UBS accomplished the world’s first cross-border repurchase transaction of a natively-issued digital bond on a public blockchain, following its June 2023 issuance of CNH 200 million in absolutely digital structured notes for a third-party issuer.

The financial institution additionally labored with Singapore’s Undertaking Guardian to pilot a tokenized Variable Capital Firm (VCC) fund final yr, solidifying UBS’s position as a pacesetter in institutional blockchain finance.