UBS looks to launch its first tokenized money market fund on Ethereum

70
1
UBS looks to launch its first tokenized money market fund on Ethereum

UBS cut jobs at its Credit Suisse subsidiary last month.

Following renovations in the asset management division, UBS Asset Management is now looking to launch its first tokenized money market fund on Ethereum.

The virtual pilot of a tokenized Variable Capital Company fund is on board with its chosen network, Ethereum. VCC is part of a broader collaboration industry initiative, led by the Monetary Authority of Singapore, Project Guardian, that aims to bring real-world assets on-chain and utilize blockchain technology to enhance market liquidity.

The pilot will be piloted by UBS tokenize, an in-house tokenization service. On the public blockchain of Ethereum, the contract will appear as a smart contract. USB Asset Management will use the pilot to conduct activities like fund subscriptions and redemptions.

The project is part of UBS Asset Management's global distributed ledger technology strategy, which focuses on utilizing public and private blockchain networks for enhanced fund issuance and distribution.

The investment bank looks to collaborate with various players and explore different investment strategies through the execution of further live pilot projects under Project Guardian in the future.

Why it matters, said Thomas Kaegi, head of UBS asset management in Singapore and Southeast Asia.

UBS forayed in November into the tokenization services. It is introducing a publicly-traded digital bond. The firm issued a 50 million tokenized fixed rate note in December.

By June, the bank had originated 200 million of fully digital structured notes for a third-party issuer.

Now read: DoJ Intensifies Probe into Credit Suisse, UBS Group Over Alleged Russian Sanctions Evasion