UBS Asset Management, a subsidiary of Zurich-based investment bank UBS, has launched its first tokenized fund on the Ethereum blockchain, aiming to expand access to its clients.
According to a November 1 release, the new product – the “UBS USD Money Market Investment Fund Token” or “uMINT” – offers clients an innovative investment solution.
Token holders will have access to UBS Asset Management’s institutional-grade cash management strategy, which uses high-quality money market instruments within a conservative and risk-managed framework.
Thomas Kaegi, co-head of UBS Asset Management, highlighted that the launch corresponds to growing investor interest in tokenized assets. He commented:
“We have seen a growing investor appetite for tokenized financial assets across all asset classes. By leveraging our global capabilities and collaborating with our peers and regulators, we can now provide our customers with an innovative solution.
This launch also supports UBS’s broader initiative “UBS Tokenize”, which began in June 2023 with the creation of fully digitally structured notes worth CNH 200 million for a third-party issuer. In November, UBS executed the first-ever cross-border repurchase transaction using a digital bond natively issued on a public blockchain.
UBS Asset Management said these efforts reflect its continued commitment to public and private blockchain networks, allowing it to expand its offerings such as fund issuance and distribution, creating more streamlined and accessible financial products.
As of the fourth quarter of 2023, UBS managed $5.7 trillion in assets invested by its clients. The company operates in more than 50 markets worldwide.
Rapid growth
Tokenization, which represents traditional assets such as money market funds backed by the U.S. Treasury on blockchain networks, has gained popularity among established financial firms, including BlackRock, over the past year.
The US Treasury Department notably recognized the potential of tokenization to reshape markets, noting that it could improve efficiency, expand investor access, and increase transparency in the Treasury market.
