UBS Asset Management, a subsidiary of Zurich-based investment bank UBS, has launched its inaugural tokenized fund on the Ethereum blockchain, aiming to expand access for its clients.
According to a November 1 statement, the new product – the “UBS USD Money Market Investment Fund Token” or “uMINT” – offers customers an innovative investment solution.
Token holders gain access to UBS Asset Management’s institutional cash management strategy, which uses high-quality money market instruments within a conservative, risk-managed framework.
Thomas Kaegi, co-head of UBS Asset Management, emphasized that the launch is in line with increasing investor interest in tokenized assets. He noted:
“We have seen growing investor interest in tokenized financial assets across all asset classes. By leveraging our global capabilities and working with colleagues and regulators, we can now offer customers an innovative solution.”
This launch also supports UBS’ 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-ever cross-border buyback transaction using a natively issued digital bond on a public blockchain.
UBS Asset Management said these efforts reflect its continued commitment to both public and private blockchain networks, which can expand offerings such as the issuance and distribution of funds, creating more streamlined and accessible financial products.
As of the fourth quarter of 2023, UBS managed $5.7 trillion in invested assets for its clients. The company is active in more than 50 markets worldwide.
Rapid growth
Tokenization, which represents traditional assets such as the U.S. Treasury-backed money market funds on blockchain networks, has gained significant traction over the past year among established financial firms, including BlackRock.
The U.S. Treasury Department in particular has recognized tokenization’s potential to reshape markets, noting that it could increase efficiency, broaden investor access, and increase transparency in the government bond market.