The Union Bank of Switzerland (UBS) has introduced a new digital finance advancement by releasing the “UBS USD Money Market Investment Fund Token” (uMINT), a money market fund developed on the Ethereum blockchain. According to a Nov. 1 statement, the UBS tokenized investment fund showcases its dedication to meeting the increasing need for tokenized financial assets and signifies a significant achievement in the company’s development of digital and decentralized finance solutions.
The introduction of uMINT enables token holders to utilize UBS’s high-quality cash management options within a cautious, risk-controlled structure. Thomas Kaegi, Co-Head of UBS Asset Management APAC stated:
We have seen a growing investor appetite for tokenized financial assets across asset classes. Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.
Broadening Digital Asset Capabilities through UBS Tokenize
This launch is a component of UBS’s wider digital asset strategy, which encompasses UBS Tokenize, the institution’s internal tokenization service. UBS Tokenize seeks to expand digital finance accessibility by lowering entry barriers and simplifying the entire asset lifecycle from start to finish—including origination, issuance, distribution, and custody.
UBS Asset Management has been actively testing tokenized funds as part of the Monetary Authority of Singapore’s Project Guardian initiative. UBS initiated a live pilot of a Variable Capital Company (VCC) fund in October 2023, marking a significant advancement in its embrace of blockchain technology.
The introduction of uMINT continues to enhance UBS’s recent successes in digital finance. In November 2023, UBS completed the first ever cross-border repurchase deal utilizing a digital bond issued locally, which was entirely settled on a public blockchain.
Furthermore, UBS led the way in blockchain innovation by introducing fully digital structured notes worth CNH 200 million for a third-party issuer in June 2023.
Rexas Finance (RXS): A Complementary Innovation in the Tokenization Landscape
In this evolving digital finance landscape, emerging projects like Rexas Finance are also making waves alongside established players like UBS. Focused on real-world asset (RWA) tokenization, Rexas Finance allows users to tokenize various assets such as real estate and commodities.
Currently priced around $0.060, analysts predict substantial growth for RXS, potentially reaching up to $17 by 2025. As institutional interest in cryptocurrencies grows, RWA crypto projects like Rexas Finance are likely to benefit from increased visibility and investment, complementing UBS’s mission to advance access to digital assets. Together, they represent a shift towards a more inclusive financial ecosystem driven by blockchain technology.
Leading in Wealth Management
Headquartered in Zurich, UBS is a global leader in wealth management, with $5.7 trillion in managed assets as of Q4 2023 following its acquisition of Credit Suisse. The bank operates across more than 50 markets, offering diversified asset management solutions and investment banking capabilities.
As UBS continues to embrace blockchain technology, its tokenization initiatives like uMINT aim to provide clients with modernized, efficient access to high-quality investment products. Through these efforts, UBS is positioning itself at the forefront of the rapidly evolving digital asset ecosystem.
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