UBS Launches Tokenized Money Market Fund Pilot on Ethereum (ETH)
Swiss multinational investment bank and financial services company UBS is introducing a pilot program for a “tokenized money market fund” on the Ethereum blockchain. The initiative, called the “first blockchain-native tokenized VCC fund pilot,” is being launched in Singapore.
Head of UBS Asset Management in Singapore & Southeast Asia, Thomas Kaegi, explains that this program is a significant step in understanding fund tokenization and leveraging UBS’s expertise in tokenizing bonds and structured products. The pilot program, conducted in collaboration with the Monetary Authority of Singapore (MAS), utilizes UBS Tokenize, the bank’s own tokenization service, to manage fund subscriptions and redemptions through smart contracts.
This pilot program aligns with UBS’s global strategy to enhance fund issuance and distribution by utilizing distributed ledger technology (DLT) on both public and private blockchain networks. UBS plans to expand its tokenization services through the UBS Tokenize program.
Hot Take: UBS Embraces Blockchain for Fund Management
UBS’s launch of a tokenized money market fund pilot on the Ethereum blockchain demonstrates the bank’s commitment to exploring the potential benefits of blockchain technology in traditional financial services. By leveraging smart contracts and distributed ledger technology, UBS aims to improve market liquidity and access for its clients. This initiative also aligns with the broader trend of financial institutions embracing blockchain to enhance efficiency and security in various aspects of their operations. As more banks and asset management firms experiment with blockchain-based solutions, we can expect increased adoption of this technology across the financial industry.
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