UBS Asset Management Unveils Tokenized Fund for Institutional Investors

UBS Asset Management announced on Friday its first tokenized investment fund, the UBS USD Money Market Investment Fund Token (uMINT). The fund is now available on Ethereum’s blockchain, bringing a new digital option for institutional investors who want secure and cautious ways to manage their cash.

According to the Union Bank of Switzerland’s press release, the uMINT fund offers investors a safe path for liquidity and risk management. The bank shared that uMINT is available through authorized distribution partners, who help bring this opportunity to investors looking for conservative and reliable investments.

uMINT Aims To Meet Institutional Needs By Focusing On Safety And Stability

The new fund is designed specifically for those who want a risk-managed way to invest. UBS explained that uMINT will meet institutional needs by focusing on safety and stability, which many large investors prefer.

Thomas Kaegi, Co-Head of UBS Asset Management for the Asia-Pacific region, shared insights on this new fund. He stated there has been a rise in interest from institutional investors in tokenized assets. He noted that UBS can offer an innovative solution by combining global skills and working with partners and regulators.

According to the update, launching uMINT is a big step in UBS’s strategy to add blockchain technology to its services. This launch follows the bank’s wider goal of using blockchain to improve operations by increasing efficiency and transparency.

Earlier this year, UBS took other steps in the blockchain world, building on its digital capabilities. The company has created fully digital structured notes and completed cross-border repurchase transactions with digital bonds on public blockchains. UBS’s actions highlight its focus on developing digital assets as part of its financial offerings.

UBS also joined the Monetary Authority of Singapore’s Project Guardian. In this project, UBS worked on a tokenized Variable Capital Company (VCC) fund, showing its active role in the world of tokenized finance. By participating in such projects, UBS shows its interest in blockchain solutions for the future of finance.

Swiss Banks Collaborate On Digital Swiss Franc Project With Blockchain

Leading Swiss banks, like UBS, PostFinance, and Sygnum, have joined together to explore a new type of digital Swiss franc based on blockchain technology. This project is led by the Swiss Bankers Association.

In this project, the banks are testing an idea called a Proof of Concept, or PoC, for a “deposit token.” This deposit token works like regular bank deposits but runs on blockchain technology. This setup allows people to complete transactions on a shared digital system called a distributed ledger.

With these new digital ideas, UBS is showing its strong interest in digital finance. The bank is working on its long-term plans by working closely with other banks on these projects. UBS hopes to become a leader in using blockchain technology with regular banking, creating new ways for people to use digital money.