UBS Rolls Out First Ethereum-Based Tokenized Investment Fund uMINT

UBS Asset Management has caught the eyes of traders with its latest launch of the first Ethereum-based tokenized money market fund, uMINT. The fund is specifically tailored for Singapore users. Notably, it marks a major lead for the firm in the digital finance sector, while also reflecting its plans to expand tokenization services for global investors.

The leading investment manager primarily aims to introduce secure and efficient cash management for investors with this blockchain-based money market investment fund launch.

UBS Launches First Ethereum-Based Money Market Fund uMINT

A recent report showed that the newly launched UBS USD Money Market Investment Fund Token, uMINT, is built on Ethereum distributed ledger technology (DLT). It focuses on allowing traders to experience institutional-grade cash management while benefiting from blockchain technology’s efficacy and transparency.

Notably, the fund targets the growing demand for digital finance solutions, especially in Asia, where innovation and tech-forward strategies are rising and fast evolving. Thomas Kaegi, Co-Head of UBS Asset Management in the Asia Pacific region, highlighted the firm’s commitment to meeting market demand for tokenized assets.

Kaegi claimed that “The appetite for tokenized investments across multiple asset classes is rising”. He added:

Through our global expertise and partnerships, UBS is now positioned to provide clients with a secure, tokenized investment solution.

Meanwhile, the executive emphasized that the uMINT fund is designed to deliver high-quality money market instruments for instruments. At the same time, it would manage risks, making it suitable for institutions needing efficient cash management solutions.

In addition, the fund aligns with the investment manager’s broader strategy for using blockchain technology to enhance traditional financial services. The firm is increasingly investing in both public and private blockchain networks, supporting fund issuance, distribution, and real-time settlements.

By leveraging blockchain’s potential, UBS not only expands its service offerings but also positions itself as a pioneer in digital finance.

Focus On Tokenization And Digital Bonds

uMINT is gaining significant traction from Asian users, being the first tokenized money fund from the firm. However, this is not the first time the investment manager has stepped into the tokenization space. Previously, it made notable strides in blockchain initiatives, gaining investors’ attention.

Earlier this year, UBS was involved in Singapore’s Project Guardian, a regulatory sandbox initiative from the Monetary Authority of Singapore (MAS). As part of the program, UBS launched a live pilot for a tokenized Variable Capital Company (VCC) fund last year, reflecting its commitment to digital finance.

In addition, UBS also issued RMB 200 million or $37.16 million in digital structured notes in June last year, expanding its tokenization footprint. These notes were issued to a third party, showcasing the firm’s ability to deliver fully digital solutions for complex financial products.

By November, the investment manager completed the world’s first cross-border repo transaction using a natively issued digital bond that was fully executed and settled on a public blockchain. This groundbreaking transaction set a precedent for blockchain adoption in cross-border finance, enhancing both transparency and efficiency.