UBS Asset Management Debuts Tokenized Money Market Fund on Ethereum

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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November 1, 2024

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UBS Asset Management announced on Friday the debut of its first tokenized investment fund, the UBS USD Money Market Investment Fund Token (uMINT), on Ethereum’s blockchain.

The new fund provides institutional investors with a digital avenue for secure, conservative cash management through high-quality money market instruments.

UBS’ First Tokenized Fund Launches on Ethereum

According to the Union Bank of Switzerland’s press release, the uMINT fund seeks to meet conservative liquidity and risk requirements, appealing to investors through authorized distribution partners.

Designed for cautious cash management, uMINT is built to align with institutional needs for risk-managed, reliable investments.

Thomas Kaegi, Co-Head of UBS Asset Management APAC, noted increasing interest in tokenized assets among institutional investors.

“We have seen growing investor appetite for tokenized financial assets across asset classes,” he shared, adding, “Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.”

The launch of uMINT marks a major step forward in UBS’ broader strategy to integrate blockchain technology across its services.

This initiative complements UBS’ ongoing efforts to incorporate distributed ledger technology (DLT) into its traditional financial services, which increases operational efficiency and transparency.

UBS’ Broader Blockchain Strategy

UBS’ commitment to blockchain extends well beyond the launch of uMINT.

Earlier this year, the firm strengthened its tokenization capabilities by issuing fully digital structured notes and completing cross-border repurchase transactions with natively-issued digital bonds on public blockchains.

UBS also joined the Monetary Authority of Singapore’s Project Guardian, where it piloted a tokenized Variable Capital Company (VCC) fund, further demonstrating its strategic engagement with tokenized finance.

These initiatives form part of UBS’ broader effort to develop tokenized financial solutions, aligning closely with its long-term goals in blockchain technology.

Swiss Banks, Including UBS, Explore Blockchain-Based Swiss Franc

Leading Swiss banks, including UBS, PostFinance, and Sygnum, have previously partnered to explore the potential of a blockchain-based digital Swiss franc.

Spearheaded by the Swiss Bankers Association (SBVg), this project aims to advance Switzerland’s financial system with digital solutions.

The project involves a Proof of Concept (PoC) for a deposit token—a blockchain-based digital asset that mirrors traditional deposits and enables transactions on a distributed ledger using smart contracts to enhance efficiency.