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UBS deepens its crypto strategy with a new tokenized fund, following digital bond transactions and structured note issuances.
Key Takeaways
- UBS Asset Management launched its first tokenized fund on the Ethereum blockchain.
- The bank manages $5.7 trillion in assets and aims to meet growing investor demand for tokenized financial assets.
UBS Asset Management announced today the launch of its first tokenized fund, the “UBS USD Money Market Investment Fund Token” (uMINT), on Ethereum’s blockchain.
UBS, managing 5.7 trillion dollars in assets, will allow investors access to a high-quality, risk-managed money market investment product through authorized distribution partners.
Thomas Kaegi, Co-Head of UBS Asset Management APAC, commented on the shift, saying,
“We have seen growing investor appetite for tokenized financial assets across asset classes.”
Kaegi underscored UBS’s commitment to digital finance, citing the bank’s work with regulators and industry partners to expand their product offerings in this space.
The uMINT fund is a part of UBS’s larger blockchain strategy, which includes other tokenization milestones.
In November 2023, UBS completed 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 fully digital structured notes for a third-party issuer.
The bank also worked with Singapore’s Project Guardian to pilot a tokenized Variable Capital Company (VCC) fund last year, solidifying UBS’s role as a leader in institutional blockchain finance.