UBS Asset Management, a major global fund management company, has launched its first “live pilot” of a tokenized money market fund on the Ethereum blockchain. The company is using its proprietary service, UBS Tokenize, to explore on-chain processes such as subscriptions and redemptions. This pilot program is part of the broader Project Guardian, an initiative overseen by the Monetary Authority of Singapore.The money market fund, structured as a variable capital company (VCC), is a novel legal framework within Singapore’s investment landscape. After the successful implementation of initial transactions, UBS Asset Management plans to expand the initiative’s scope by collaborating with a more diverse group of financial entities and exploring various investment strategies.UBS has a long history of involvement in blockchain technology. In November 2022, the financial institution made headlines by introducing the world’s first digital bond, tradable and settleable on both traditional and blockchain platforms. In December of the same year, the firm issued a tokenized fixed-rate note valued at $50 million. In June, UBS created 200 million yuan worth of entirely digital structured notes for a third-party issuer.The Ethereum-based pilot is a significant milestone in UBS’s venture into blockchain-based financial instruments. It provides UBS with valuable experience and contributes to the industry’s understanding of how blockchain can improve market liquidity and client accessibility. UBS Chair Colm Kelleher commented on blockchain earlier this year, emphasizing its unstoppable nature and potential to reduce operational hurdles and costs.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇸🇬 🇨🇳 |
| Sentiment | positive |
| Relevance Score | 10 |
| People | Colm Kelleher, Thomas Kaegi |
| Companies | UBS Asset Management, PrimeXBT, Monetary Authority of Singapore, UBS Tokenize, Project Guardian, Binance |
| Currencies | Singapore Dollar, Ethereum, Bitcoin, Chinese Yuan |
| Securities | None |
