UBS Asset Management has introduced a tokenized money market investment fund built on Ethereum distributed ledger technology.
Thomas Kaegi, co-head of UBS Asset Management APAC, stated, “We have seen growing investor appetite for tokenized financial assets across asset classes. By leveraging our global capabilities and collaborating with peers and regulators, we can now offer clients an innovative solution.”
The bank’s global distributed ledger technology strategy focuses on utilizing both public and private blockchain networks to enhance fund issuance and distribution.
As an active industry partner in The Monetary Authority of Singapore’s Project Guardian initiative, UBS Asset Management launched a live pilot of a tokenized Variable Capital Company (VCC) fund in October 2023.
Additionally, this fund launch is part of UBS’s broader expansion of tokenization services through UBS Tokenize. In June 2023, UBS originated CNH 200 million of fully digital structured notes for a third-party issuer, and in November 2023, the bank completed the world’s first cross-border repurchase transaction with a natively-issued digital bond, fully executed and settled on a public blockchain.