UBS Bank has just launched a tokenized fund on Ethereum, marking a new step in applying blockchain technology to traditional finance.
On November 1, UBS Bank, one of the world's largest investment banks, officially announced the launch of a tokenized fund on the Ethereum network, called UBS USD Money Market Investment Fund Token (uMINT). The move is considered an important step forward, affirming the growing interest of traditional financial institutions in digital assets and blockchain technology.
Thomas Kaegi, Co-Head of Asia Pacific at UBS, said the bank has seen growing investor demand for tokenized financial assets across a range of asset classes. The launch of uMINT is seen as a direct response to this demand, while also opening up new investment products for UBS clients.
Impact on the Cryptocurrency Market
UBS's launch of uMINT has created a wave of optimism in the cryptocurrency community. Many experts believe that the move will have a positive impact on the price of Ether (ETH), the native cryptocurrency of the Ethereum network.
Popular crypto show Mario Nawfal’s Roundtable commented that UBS’s entry into the Ethereum tokenization market is like bringing ETH to the center of traditional finance. According to them, if big banks like UBS are willing to participate, it is only a matter of time before tokenized assets become mainstream. Crypto analyst Tony Edward also gave an optimistic assessment, saying that not owning ETH could cause investors to miss out on potential profits.
UBS said that investors holding uMINT tokens will benefit from the bank’s standard cash management solutions, based on high-quality money market instruments and built within a conservative risk management framework. This helps ensure the safety and transparency of clients’ investments.
The launch of uMINT is not UBS’s first foray into tokenization. In October 2023, the bank launched a controlled pilot of a tokenized market money fund through its in-house tokenization service UBS Tokenize. Using smart contracts on Ethereum, UBS successfully completed operations such as fund redemption and subscription.
The event comes as many other financial institutions are also actively participating in the tokenized fund space. On October 31, Franklin Templeton launched a tokenized fund on Base, Coinbase's layer-2 network. Previously, Libeara and FundBridge Capital also launched a tokenized US Government Bond fund on a public blockchain.
In May 2024, BlackRock's USD Digital Liquidity Fund became the largest treasury fund tokenized on the blockchain.
