The asset management division of Swiss banking giant UBS has launched a tokenized investment fund on Ethereum.
The Variable Capital Company (VCC) tokenized fund was launched as part of Singapore's Project Guardian pilot project, an initiative by the Monetary Authority of Singapore announced in May last year. UBS said it intends to carry out more pilot programs under Project Guardian.
The fund is structured as a smart contract on Ethereum and was launched using the bank's proprietary tokenization service, UBS Tokenized, according to a advertisement on Monday.
It allows UBS Asset Management to perform various functions, such as processing subscriptions and redemptions of funds.
"This is a key milestone in understanding fund tokenization, building on UBS's expertise in tokenizing bonds and structured products," said Thomas Kaegi, head of asset management at UBS in Singapore and Southeast Asia.
"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," he added.
According to a recent report According to the Bank for International Settlements, tokenization has the potential to significantly improve efficiency and transparency in financial markets.
Bank of America investigation suggests that the total value of tokenized assets could represent up to 10% of global GDP, rising to $16.1 trillion, by 2030.
Companies such as Goldman Sachs, JPMorgan, Hamilton Lane and Siemens have previously announced his participation in asset tokenization projects.
UBS first ventured into the blockchain space in November last year. transmitter a $370 million bond on the SIX Digital Exchange private blockchain platform.
That bond was designed for regulated tokenized offerings and was also available on the Six Swiss exchange.
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