UBS Unveils Its First Tokenized Investment Fund on Ethereum
UBS Asset Management has launched its inaugural tokenized investment fund on the Ethereum blockchain. The fund, named the “UBS USD Money Market Investment Fund Token,” or ‘uMINT,’ is designed for various authorized distribution partners in Singapore, according to UBS.
Tokenization refers to the transformation of traditional assets, such as stocks or bonds, into digital tokens that can be managed on a blockchain. This decentralized technology underpins cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). These digital tokens are representative of shares in the asset, allowing investors to buy, sell, or hold fractions of conventional financial products with greater efficiency.
UBS seeks to take advantage of the growing interest in tokenization by utilizing its extensive global network and regulatory partnerships. Investors who acquire tokens in the uMINT fund will have access to institutional-grade money market assets within a conservative and risk-managed environment.
In related news, the trend of tokenization within traditional finance (TradFi) is gaining momentum among major financial institutions. Just this week, Franklin Templeton expanded its OnChain U.S. Government Money Market Fund to include Coinbase’s Base as its sixth blockchain, enabling trading on this layer-2 network. Similarly, Wellington Management has teamed up with Ondo Finance to enhance liquidity for its newly launched tokenized U.S. Treasury Fund. This collaboration aims to make traditional assets, including Treasury bonds, more accessible through the use of tokenization and blockchain technology.
