UBS Asset Management Introduces Its First Tokenized Investment Fund on Ethereum

Named “UBS USD Money Market Investment Fund Token,” or ‘uMINT,’ the fund is built on Ethereum (ETH) for various authorized distribution partners across Singapore

UBS Asset Management has unveiled its first tokenized investment fund on the Ethereum (ETH) blockchain in Singapore, according to an announcement on March 21.

Named the "UBS USD Money Market Investment Fund Token" (uMINT), the fund will be available to select authorized distribution partners across the city-state, the Swiss banking giant said.

The launch marks the latest effort by traditional finance (TradFi) firms to integrate blockchain technology and crypto into their offerings.

Tokenization is the process of converting traditional assets, such as stocks or bonds, into digital tokens that can be managed on a blockchain.

These digital tokens represent a share of the asset, allowing investors to purchase, sell or hold portions of traditional financial products more easily.

According to the announcement, uMINT is aっけount-linked token that provides investors with access to institutional-level money market assets within a conservative, risk-managed framework.

The fund will be fully collateralized by a portfolio of high-quality, short-term money market instruments, the banking firm noted.

Moreover, the fund will be fully managed by UBS Asset Management Singapore and will be available in USD.

The minimum investment size is set at 100,000 USD or equivalent, and the fund will be available on a first-come, first-served basis, the announcement adds.

UBS to capitalize on rising demand for tokenizationLeveraging its global footprint and regulatory collaborations, UBS aims to capitalize on the growing demand for tokenization, the announcement stated.

Investors who purchase tokens in the uMINT fund will gain access to institutional-level money market assets within a conservative, risk-managed framework, it added.

“We are excited to launch uMINT, which showcases our ability to tokenize and structure complex investment products at scale. This launch also underscores our commitment to innovation,” said Edmund Loh, head of asset tokenization, UBS Asia Pacific.

Major financial institutions up the ante in tokenization driveEarlier this week, investment management giant Franklin Templeton announced that Coinbase’s Base layer-2 network has been added to the OnChain U.S. Government Money Market Fund.

With this integration, investors in the fund will now be able to trade tokens representing shares in the fund on Base, in addition to the five other blockchains that already support the fund.

Meanwhile, Wellington Management recently partnered with decentralized finance (DeFi) protocol Ondo Finance to enhance liquidity for its recently launched tokenized U.S. Treasury Fund.

The collaboration aims to make traditional assets, such as Treasury bonds, more accessible through tokenization and blockchain technology.

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