UBS Launches First Tokenized Money Market Fund on Ethereum
UBS Asset Management launches uMINT, its first tokenized fund on Ethereum, bringing blockchain technology into traditional finance. This innovation under UBS Tokenize enhances efficiency in fund issuance and distribution, meeting investor demand for digital assets.
October 31, 2024 – In a pioneering move for the traditional finance industry, UBS Asset Management has launched its first tokenized fund on the Ethereum blockchain. This product, known as uMINT (the UBS USD Money Market Investment Fund Token), allows UBS to bridge conventional finance and digital innovation, offering its clients a blockchain-based investment avenue.
Managing over $5.7 trillion in assets, UBS’s new fund marks a significant expansion of its proprietary tokenization platform, UBS Tokenize, which aims to digitize traditional capital market instruments, including bonds, funds, and structured products. This step comes on the heels of a successful pilot in Singapore last year, where UBS tested a tokenized Variable Capital Company (VCC) fund.
The driving force behind this launch is UBS’s commitment to staying ahead of investor demand for blockchain-based financial products. According to Thomas Kaegi, UBS Asset Management’s Asia-Pacific co-head, “We have seen growing investor appetite for tokenized financial assets across asset classes. Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.”
A New Chapter in Asset Management
With the launch of uMINT, UBS joins other financial giants such as Franklin Templeton and BlackRock that are exploring blockchain as a new frontier for asset management. Franklin Templeton launched its U.S. Government Money Fund on Coinbase's Base network, while BlackRock recently made its own foray into Ethereum with the BUIDL fund.
UBS Tokenize utilizes both public and private networks, offering flexibility and scalability to support the digitization of multiple asset classes. The bank’s blockchain strategy aims to facilitate seamless fund issuance and distribution, giving UBS a competitive edge as blockchain gains traction in mainstream finance.
Why Blockchain Matters for Traditional Finance
Tokenization enables efficient fund management and distribution, allowing assets to be traded and settled rapidly. Through blockchain, UBS clients can access a transparent, immutable ledger for investment holdings, paving the way for faster and more efficient transactions while meeting regulatory standards.
This expansion of digital assets represents UBS’s long-term vision to evolve within a transforming financial landscape. The Ethereum-based uMINT is just the beginning for UBS, which plans to broaden its blockchain-based offerings as technology and regulation evolve.