UBS builds investment fund on Ethereum

UBS Asset Management has introduced the first tokenized investment vehicle based on Ethereum. The fund, called “UBS USD Money Market Investment Fund Token,” or “uMINT,” is built on Ethereum for certain authorized distribution partners in Singapore.

Tokenization is converting traditional assets, like stocks or bonds, into digital tokens that can be managed on a blockchain, the decentralized technology that underpins cryptocurrencies like Bitcoin.

These digital tokens facilitate the buying, selling, and holding portions of traditional financial instruments by representing a portion of the asset.
UBS intends to capitalize on the rising demand for tokenization by leveraging its international resources and regulatory alliances. Investors who purchase tokens in the uMINT fund will have access to institutional-level money market assets in a cautious, risk-managed setting.

In the past, UBS has actively participated in the public Ethereum network using permission-required tokens. However, Ethereum technology is also available in private settings. Since UBS uses both as part of UBS Tokenize, we have requested clarification even though the fund most likely uses public blockchain.

According to Thomas Kaegi, co-head of UBS Asset Management APAC, “We have seen growing investor appetite for tokenized financial assets across asset classes.” “We can now offer clients a cutting-edge solution by utilizing our global capabilities and working with peers and regulators.”

The crypto investor class is currently the primary focus of tokenized money market funds like BUIDL, Franklin Templeton’s FOBXX, and soon uMINT. The funds offer a secure location for cash parking and revenue generation.