UBS Asset Management, a global leader in fund management, has begun the first pilot of a tokenized money market fund using the Ethereum blockchain.
Startup Leverages UBS Tokenize, Proprietary Tokenization Service, for Fund Pilot Launch
This pilot program allows UBS Asset Management to trial various fund transactions on the blockchain, including subscriptions and payments.
Emphasizing the importance of this milestone, Thomas Kaegi, Head of UBS Wealth Management in Singapore and Southeast Asia, said, “This is an important milestone in understanding the tokenization of funds, building on UBS' expertise in tokenizing bonds and structured products.”
“Through this trial initiative, we will work with traditional financial institutions and fintech providers to help understand how we can improve market liquidity and market access for customers.”
UBS has been at the forefront of exploring and implementing blockchain technology. In November 2022, UBS introduced the world's first digitally traded bond that is both blockchain-based and traded on traditional exchanges.
In December 2022, the company issued a $50 million tokenized fixed-rate bond, followed by a CNY200 million fully digital structured bond issuance for a third-party issuer in June 2023.
*Not investment advice.