UBS launches tokenized money fund on Ethereum
- UBS launches tokenized money market fund on Ethereum, aiming to leverage blockchain technology for enhanced liquidity and transparency
- The bank introduced its in-house tokenization service, UBS Tokenize, to simplify asset management through smart contracts on Ethereum.
- UBS collaborates with traditional financial institutions and fintech firms to explore broader applications of tokenization for real-world assets, seeking to advance financial market technology.
UBS, a Swiss multinational investment bank and financial services company, has made a significant stride into the future of finance by launching tokenzied money.
UBS Launches Tokenized Money Market Fund
UBS launches tokenized money market fund using its in-house tokenization service called UBS Tokenize. The fund is structured as a smart contract on Ethereum, allowing UBS to carry out various activities such as subscriptions and redemptions. It’s like having a personal assistant for all your tokenization needs, making it easier than ever to manage your funds on the blockchain.
The bank has utilized its in-house tokenization service, UBS Tokenize, to launch the pilot of the fund. Thomas Kaegi, head of UBS Asset Management in Singapore and Southeast Asia, said in a statement that the pilot was a “key milestone” in understanding the tokenization of funds. UBS launches tokenized money market fund pilot is part of Project Guardian, a collaborative industry initiative led by Singapore’s central bank, the Monetary Authority of Singapore (MAS).
UBS’s Collaboration with Traditional Financial Institutions and Fintech Providers
UBS also collaborates with traditional financial institutions and fintech providers to explore advancements in tokenizing real-world assets. For example, it launched the first digital bond listed and regulated on blockchain and traditional exchanges in November 2022, issued a $50 million tokenized fixed-rate bond in December 2022, and issued 200 million yuan of fully digital structured bonds on behalf of a third-party issuer in June 2023.
To tokenize funds, UBS is employing blockchain technology and Ethereum smart contracts. This approach improves market liquidity, enhances efficiency, and increases transparency in financial markets. Clients can enjoy a seamless and secure process for subscribing to and redeeming funds.
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