UBS Asset Management has launched its first tokenised investment fund, the “UBS USD Money Market Investment Fund Token” (uMINT), built on Ethereum’s blockchain.

This token offers investors access to institutional-grade cash management solutions backed by high-quality money market instruments within a conservative, risk-managed framework.

The launch is part of UBS’ strategy to use blockchain for better fund issuance and distribution.

UBS recently piloted a tokenised Variable Capital Company (VCC) fund in October 2023 as part of its involvement in the Monetary Authority of Singapore’s Project Guardian.

The firm has also issued CNH 200 million in digital structured notes in June 2023 and completed a cross-border digital bond transaction in November 2023.

Thomas Kaegi, Co-Head of UBS Asset Management APAC, said,

“We have seen growing investor appetite for tokenised 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.”

This article first appeared on fintechnews.sg

Featured image credit: Edited from Freepik