- UBS’s uMINT tokenized fund on Ethereum meets the rising demand for secure, blockchain-based investment solutions among institutions.
- By launching uMINT, UBS connects traditional finance with blockchain, paving the way for diverse, risk-managed digital assets.
- As more players join, tokenization is transforming finance, making secure, innovative investment options accessible to global investors.
UBS Asset Management has launched its innovative “uMINT” tokenized money market fund on Ethereum, a major step in blockchain-driven finance. This move, catering to the $1.7 trillion financial giant’s global clientele, aligns with the growing demand for digital assets among institutional investors. The new UBS USD Money Market Investment Fund Token, or “uMINT,” introduces high-grade cash management tools while leveraging Ethereum’s secure distributed ledger technology.
Bridging TradFi and Blockchain
With uMINT, UBS addresses a rising appetite for blockchain-based assets across diverse asset classes. According to Thomas Kaegi, UBS’s Co-Head for Asset Management in the Asia-Pacific, the initiative aligns with a strategy to merge traditional finance with digital platforms. By expanding its tokenization services, UBS enables clients to diversify investments through highly secure, risk-managed assets on public blockchains.
Additionally, UBS is leveraging both public and private blockchain networks. This dual approach ensures that fund distribution and issuance remain efficient, secure, and scalable. Notably, the firm also participates in Singapore’s Project Guardian, collaborating with regulatory bodies and financial peers to further develop institutional-level tokenized products.
Leading in Tokenized Finance
UBS is a trailblazer in blockchain finance. In 2023, the firm executed several transactions, including a cross-border repurchase agreement using a native digital bond on a public blockchain. This underscores UBS’s commitment to tokenized finance and positions it as a leader in digital asset transformation.
Significantly, UBS is not alone. Franklin Templeton has expanded its tokenized OnChain US Government Money Fund (FOBXX) onto the Base network, extending a product already launched on Stellar, Polygon, and Arbitrum.
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Moreover, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) achieved a record $375 million in May 2024, surpassing Franklin Templeton’s fund, further demonstrating industry-wide momentum in blockchain finance.
Tokenization: Shaping the Future of Finance
As UBS develops its tokenization capabilities, the financial landscape is changing. This trend points to a future where traditional and digital assets coexist on blockchain platforms, providing new investment avenues for both asset managers and investors. Besides UBS, other major players, including BlackRock and Franklin Templeton, are following similar paths, further emphasizing tokenization’s growing role in reshaping global finance.
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