UBS has launched its first tokenized fund, why choose Ethereum as the issuing public chain?

UBS has launched its first tokenized fund based on Ethereum, emphasizing the growing interest among investors in tokenized financial assets. Crypto commentators say this move amounts to placing ETH at the core of traditional finance, and they expect a positive impact on the price of ETH. (Background: Full text of SmartCon speech) The future of asset management - Tokenization: Transaction fees down 99.7%, market reaches everyone) (Additional context: BlackRock plans to launch a 'Tokenized Fund' BUIDL! Seizing the huge opportunity of RWA real-world assets) Traditional finance (TradFi) is actively entering tokenization and RWA. Switzerland's largest bank and global wealth management giant UBS announced yesterday (1) the launch of its first tokenized fund on the Ethereum blockchain, officially named 'UBS USD Money Market Investment Fund Token,' abbreviated as 'uMINT.' In a press release, UBS Asia-Pacific co-head Thomas Kaegi stated that the company has 'discovered a growing interest among investors in tokenized financial assets across asset classes.' Although UBS did not specifically disclose which financial instruments are included in this tokenized fund, it stated that uMINT token holders will be able to leverage its institutional-grade cash management solutions, based on 'high-quality money market instruments,' built around a 'conservative risk management framework.' The launch of the fund is part of UBS's broader efforts to expand tokenization services through UBS Tokenize. As a partner in the Monetary Authority of Singapore's Project Guardian, UBS Asset Management launched a pilot for tokenized Variable Capital Company (VCC) funds last October, utilizing smart contracts on Ethereum for various activities, including redemptions and fund subscriptions. Extended reading: Full text of SmartCon speech) The future of asset management - Tokenization: Transaction fees down 99.7%, market reaches everyone Placing Ethereum at the core of TradFi Multiple cryptocurrency commentators are optimistic about this move's positive impact on Ethereum, further boosting the price of ETH. Cointelegraph reported that popular cryptocurrency program Mario Nawfal's roundtable praised today on X: 'This move is like placing ETH at the core of traditional finance.' He added, 'If big banks are ready to participate, then tokenized assets becoming mainstream is just a matter of time.' Meanwhile, cryptocurrency analyst Tony Edward commented on this news, stating, 'If you haven't engaged with ETH yet, you're missing out on profits.' As of the time of publication, ETH was trading at $2,505, up 0.1% in the past 24 hours, continuing to hover in the $2,500 range. Extended reading: Why Ethereum will capture most of the RWA market? There are three key factors Traditional finance rushes to develop tokenized funds Notably, after asset management giant BlackRock issued its first tokenized fund 'BlackRock USD Institutional Digital Liquidity Fund' (BUIDL) on Ethereum in March, many financial institutions have launched tokenized currency funds on blockchain networks, including Franklin Templeton recently issuing its U.S. Government Money Fund (FOBXX) on the Base chain, having previously launched FOBXX on Stellar, Polygon, and Arbitrum. RWA.xyz data shows that Ethereum is currently the largest RWA tokenized blockchain, with tokenized assets on this network valued at over $3 billion. Currently, approximately $13.1 billion worth of assets are tokenized on-chain, with private credit accounting for the highest proportion, over $9.2 billion, U.S. government bonds second, about $2.4 billion, and BlackRock's $BUIDL holding the highest value in U.S. government bonds, exceeding $523 million. Related reports Coinbase enters RWA) plans to launch a tokenized fund, BlackRock's BUIDL scale has exceeded $520 million Tether will launch an RWA platform: Bonds, stocks, funds to coffee shop points can all be tokenized Traditional finance surrender! Transnational remittance leader Swift develops 'blockchain transfers,' possibly based on Ethereum connecting to RWA and tokenized assets Citigroup adopts Avalanche subnet 'Advancing RWA,' testing private equity fund tokenization 'UBS launches its first tokenized fund, why choose Ethereum as the issuing public chain?' This article was first published in BlockTempo (the most influential blockchain news media).