UBS Unveils Tokenized Money Market Fund on Ethereum, Catering to Digital Demand

UBS Asset Management has made history in digital finance by launching its first ever tokenised fund on the Ethereum blockchain. The UBS USD Money Market Investment Fund Token (UMINT) is an institutional grade cash management solution and is available in Singapore initially through approved distribution partners.

As one of the world’s largest wealth management firms, UBS’s entry into the tokenised fund space is a strategic move to meet the growing demand for digital investment products from institutional investors.

The UMINT fund invests in high quality, low risk money market instruments and is a conservative approach to cash management for tokenholders.

According to UBS, the fund uses Ethereum’s blockchain to bring greater transparency, security and accessibility to asset management. By using blockchain, UBS aims to streamline fund issuance and distribution in line with the bank’s overall digital asset strategy.

UBS Advances Tokenisation Efforts Through Strategic Projects

The UMINT fund is part of UBS’s ongoing investment product digitisation. In October 2023, UBS participated in Singapore’s Project Guardian, a regulatory pilot on tokenised Variable Capital Company (VCC) funds.

This was a key milestone in UBS’s tokenisation journey which also includes its UBS Tokenize platform—a blockchain based service initially focused on tokenising bonds, funds and structured products.

Previous UBS digital initiatives include:

• Issued CNH 200 million digital structured notes in June 2023.
• Completed cross border repurchase transaction with a blockchain issued digital bond in November 2023.
• Participated in Singapore’s Project Guardian VCC pilot.
• UBS Tokenize platform launched for bond and fund tokenisation.

UBS’s Response to Growing Demand for Digital Assets

Thomas Kaegi, co-head of UBS Asset Management APAC said: “We see growing investor interest in tokenised financial assets across asset classes.” “We can use our global reach and work with regulators to bring digital solutions to our clients,” he added.

UBS’s strategy is to bridge public and private blockchains within its fund range, giving clients a way to access digital money market investments.

This is for the forward thinking investor and part of UBS’s ambition to be a leader in the digital asset space.

In short, UBS’s tokenised money market fund on Ethereum is the future of wealth management where blockchain is at the heart of asset management and investor solutions.