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UBS Asset Management has introduced its first tokenized investment fund on ethereum.
The fund, named 'UBS USD Money Market Investment Fund Token' or 'uMINT', is based on ethereum (eth) for several authorized distribution partners in Singapore. via USB.
Tokenization is a process that converts traditional assets, such as stocks or bonds, into digital tokens that can be managed on a blockchain, the decentralized technology underlying cryptocurrencies such as bitcoin (btc) and ethereum.
These digital tokens represent a portion of the asset, allowing investors to buy, sell, or hold portions of traditional financial products more efficiently.
UBS aims to capitalize on the growing demand for tokenization by leveraging its global resources and regulatory collaborations. Investors who purchase tokens in the uMINT fund will gain access to institutional-level money market assets within a conservative and risk-management framework.
Tokenization in TradFi
Major financial institutions are increasingly exploring tokenization. Earlier this week, Franklin Templeton added Coinbase Base as the sixth blockchain supporting its US government money market fund OnChain, enabling operations on the Layer 2 network.
Wellington Management also collaborated with Ondo Finance to increase liquidity for its recently launched tokenized US Treasury Fund.
The partnership aims to make traditional assets, such as Treasury bonds, more accessible through tokenization and blockchain technology.
