Banking Giant UBS Launches First Tokenized Fund on Ethereum Network

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Banking Giant UBS Launches First Tokenized Fund on Ethereum Network

UBS Asset Management, a global financial giant, has taken a significant step in digital innovation within the traditional finance sector by launching the first tokenized investment fund on the Ethereum network. The UBS USD Money Market Investment Fund Token, abbreviated as "uMINT," reflects the new strategy of the Swiss banking giant, which manages over $5.7 trillion in assets. This move aims to bridge traditional banking with digital innovations, offering clients a broader array of financial assets.

UBS Group (UBS) launched uMINT through its tokenization platform, UBS Tokenize. The platform paves the way for the digitalization of traditional capital market instruments such as bonds, funds, and structured products, ushering in a new era of financial applications. This strategy follows UBS's successful pilot program of a tokenized Variable Capital Company fund, which was initiated in Singapore last year. UBS aims to provide innovative solutions in global financial markets by integrating both public and private blockchain networks into its fund issuance and distribution processes.

Demand for digital assets is rising. Thomas Kaegi, Co-Head of UBS Asset Management Asia-Pacific, noted the growing investor demand for tokenized financial assets across asset classes. Kaegi emphasized the bank’s digital asset-focused strategic direction by stating, "By leveraging our global capabilities and collaborating with our colleagues and regulators, we can offer innovative solutions to our clients."

UBS's digital innovation initiative addresses the increasing demand for digital assets in the financial sector while also aiming to streamline the fund issuance and distribution processes. This step reinforces UBS’s goal of providing a richer investment experience for its clients by leveraging its expertise and global collaboration network. This strategy also aligns with the digital asset initiatives of other major financial institutions, such as Franklin Templeton (FTF) and BlackRock (BLK).