UBS launches tokenized investment fund uMINT on Ethereum
Swiss financial conglomerate UBS has launched its first tokenized investment fund, uMINT, which is a currency market fund based on Ethereum’s distributed ledger technology and will be offered through authorized distribution partners.
UBS Tokenize Continues to Expand Tokenization Services
UBS announced the launch of a tokenized currency market fund pilot on Ethereum in October 2023, as part of the Monetary Authority of Singapore’s (MAS) “Project Guardian.” UBS’s role in the experiment was to directly issue Variable Capital Company (VCC) funds on the digital asset network. The aim is to enhance fund distribution, promote trading of VCC fund shares on the secondary market, and improve the operational efficiency of the entire industry.
UBS Asset Management utilizes its in-house UBS Tokenize to continuously expand tokenization services. UBS Tokenize supports opportunities throughout the asset lifecycle, including initiation, issuance, distribution, and custody, initially focusing on tokenizing bonds, funds, and structured products. Now, the first tokenized investment fund, uMINT, based on Ethereum’s distributed ledger technology, has been launched through authorized distribution partners.
Thomas Kaegi, Head of UBS Asset Management in Asia-Pacific, stated:
“We see a growing interest from investors in tokenized financial assets across asset classes. Through our global reach and collaborations with peers and regulatory bodies, we can now offer innovative solutions to our clients.”
Leading financial giants join in, promising a bright future for RWAs
According to RWA.xyz data, the current on-chain RWA assets amount to $3.9 billion (excluding private loans), with Ethereum being the largest blockchain for tokenizing real-world assets, with tokenized assets valued at over $3 billion. The largest asset class is U.S. Treasury bonds, with a value of $2.4 billion.
BlackRock’s BUIDL holds the highest market value of U.S. Treasury bond products, exceeding $523 million, while Franklin Templeton’s FOBXX on-chain U.S. government currency fund has a market value of around $408 million.
RWA stands for Real World Assets, representing the introduction of many physical or intangible assets from the non-blockchain world into the blockchain through tokenization technology, turning them into tradable assets on the chain, known as “real asset tokenization.” This allows traditional finance (TradFi) to benefit from the efficiency, transparency, and speed of blockchain technology, while enabling Web3 to access traditional financial investment products. It also serves as a bridge between TradFi and DeFi, allowing traditional financial assets to operate in the DeFi world and inject a significant amount of liquidity.
The participation of giants like BlackRock, Franklin Templeton, and UBS in tokenization signifies the increasing acceptance of the market.
