Swiss multinational investment bank and financial services company UBS is launching a “tokenized money market fund” pilot program on Ethereum (ETH).
In a new blog post, UBS Asset Management announces what it calls the “first blockchain-native tokenized VCC pilot fund” in Singapore.
Says Thomas Kaegi, head of UBS Asset Management, Singapore and Southeast Asia:
“This is a key milestone in understanding fund tokenization, leveraging UBS’s expertise in tokenizing bonds and structured products. “Through this exploratory initiative, we will work with traditional financial institutions and financial technology providers to help understand how to improve market liquidity and market access for clients.”
UBS says the pilot program, led by the Monetary Authority of Singapore (MAS), uses UBS Tokenize, the company's internal tokenization service, which allows fund subscriptions and redemptions to be managed through a smart contract.
The announcement goes on to state that this initiative is part of the company's overall strategy to improve the issuance and distribution of funds by utilizing distributed ledger technology (DLT) on public and private blockchain networks. UBS is expanding tokenization services through its UBS Tokenize program.
According to the company,
“Following the successful launch of the first pilot transactions, UBS Asset Management will look to execute further live pilot use cases under Project Guardian, working with a broader set of partners and exploring various investment strategies.”
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