UBS has officially launched its first tokenized investment fund, the “UBS USD Money Market Investment Fund Token” or “UMINT,” available in Singapore.
The fund, a money market product, operates on the Ethereum (CRYPTO:ETH) blockchain and offers institutional investors cash management options through conservative investments in high-quality money market instruments, as noted by UBS.
This launch is part of UBS’s broader strategy to integrate digital assets and tokenization into its services.
The initiative builds on the bank’s recent moves, including its involvement in Singapore’s Project Guardian, where UBS joined a pilot for a tokenized Variable Capital Company (VCC) fund in October 2023.
UBS has also developed the UBS Tokenize platform, which initially focuses on tokenizing bonds, funds, and structured products.
In 2023, UBS issued CNH 200 million in digital structured notes and conducted its first cross-border repurchase transaction using a natively issued digital bond on a public blockchain.
Thomas Kaegi, co-head of UBS Asset Management APAC, explained that the UMINT fund addresses the growing interest in digital investments.
Kaegi stated, “We have seen growing investor appetite for tokenized financial assets across asset classes.”
He further added, “Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.”
The UMINT fund reflects UBS’s commitment to adapting its wealth management strategy to meet the demand for digital assets, offering a new way for clients to access money market investments.
At the time of reporting, the Ethereum price was $2,469.22.