UBS Asset Management, a subsidiary of Zurich-based investment bank UBS, launched its inaugural tokenized fund on the ethereum blockchain, aiming to expand access for its clients.
According to a report from November 1 statementThe new product, the “UBS USD Money Market Investment Fund Token” or “uMINT”, offers clients an innovative investment solution.
Token holders will gain access to UBS Asset Management's institutional-grade cash management strategy, which uses high-quality money market instruments under a conservative and risk management framework.
Thomas Kaegi, co-head of UBS Asset Management, emphasized that the launch aligns with growing investor interest in tokenized assets. He commented:
“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 customers an innovative solution.”
This launch also supports UBS's broader “UBS Tokenize” initiative, which began in June 2023 with the creation of fully digitally structured notes worth CNH 200 million for a third-party issuer. In November, UBS had executed the first cross-border repo transaction using a digital bond natively issued on a public blockchain.
UBS Asset Management said these efforts reflect its continued commitment to public and private blockchain networks, allowing it to expand offerings such as fund issuance and distribution, creating more streamlined and accessible financial products.
As of the fourth quarter of 2023, UBS managed $5.7 trillion of its clients' invested assets. The company operates in more than 50 markets worldwide.
Rapid growth
Tokenization, which represents traditional assets such as money market funds backed by the US Treasury on blockchain networks, has gained significant traction among established financial firms, including BlackRock, over the past year.
In particular, the US Treasury Department has recognized the potential of tokenization to reshape markets, noting that it could boost efficiency, expand investor access, and increase transparency in the Treasury market.
