UBS Asset Administration, a subsidiary of Zurich-based funding financial institution UBS, has launched its inaugural tokenized fund on the Ethereum blockchain with the intention of increasing entry for its purchasers.
In response to an announcement on November 1, the brand new product — “UBS USD Cash Market Funding Fund Token” or “uMINT” affords purchasers an modern funding answer.
Token holders will achieve entry to UBS Asset Administration's institutional-grade money administration technique that makes use of high-quality cash market devices in a conservative, risk-managed framework.
Thomas Kaegi, co-head of UBS Asset Administration, emphasised that the launch is according to rising investor curiosity in tokenized belongings. He commented:
“We now have seen growing investor curiosity in tokenized monetary belongings throughout asset lessons. By leveraging our international capabilities and dealing with companions and regulators, we are able to now present purchasers with modern options.”
The launch additionally helps UBS's broader “UBS Tokenize” initiative, which started in June 2023 with the creation of CNH 200 million price of absolutely digitally structured bonds for a third-party issuer. By November, UBS carried out the first-ever cross-border repurchase transaction utilizing a natively issued digital bond on a public blockchain.
UBS Asset Administration mentioned the trouble displays its continued dedication to each private and non-private blockchain networks, enabling it to increase choices akin to fund issuance and distribution and create extra environment friendly and accessible monetary merchandise.
As of the fourth quarter of 2023, UBS managed $5.7 trillion in invested belongings of its purchasers. The corporate operates in additional than 50 markets worldwide.
Fast development
Tokenization, which represents conventional belongings akin to US Treasury-backed cash market funds on blockchain networks, has gained important traction over the previous yr amongst established monetary corporations, together with BlackRock.
Specifically, the US Treasury acknowledged the potential of tokenization to reshape markets, noting that it may improve effectivity, increase investor entry, and improve transparency within the treasury market.
