$5.7T Banking Giant UBS Launches First Tokenized Fund on Ethereum
Global financial powerhouse UBS Asset Management launched its first tokenized investment fund on the Ethereum blockchain. This is a major stride for the traditional finance sector toward mainstream adoption of blockchain technology.
The new product, dubbed the UBS USD Money Market Investment Fund Token, abbreviated as 'uMINT,' is a strategic move for the Swiss banking giant, which currently manages over $5.7 trillion in assets. The fund will be available through select distribution partners that bridge conventional banking to digital innovation.
The launch is part of a broader strategy under the bank's own tokenization platform, UBS Tokenize, focused on digitizing traditional capital market instruments like bonds, funds, and structured products. The move follows UBS's successful pilot program in Singapore last year to test a tokenized Variable Capital Company fund.
Thomas Kaegi, UBS Asset Management Asia-Pacific co-head, said: "We have seen growing investor appetite for tokenized financial assets across asset classes. Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.”
The banking institution’s blockchain strategy consists of public and private networks, aiming to smoothen the process of issuance and distribution of funds. This follows several traditional financial giants that have forayed into the digital asset sector. Franklin Templeton launched its U.S. Government Money Fund on Coinbase's Base network, while BlackRock’s BUIDL is live on the Ethereum blockchain.
