– UBS Asset Management launches pilot of tokenized money market fund on Ethereum blockchain
– UBS utilizes its in-house tokenization service, UBS Tokenize, for the fund pilot
– The pilot aims to test fund activities on-chain, including subscriptions and redemptions
– UBS has been actively exploring and utilizing blockchain technology
– The tokenized money market fund pilot is part of Project Guardian led by the Monetary Authority of Singapore
– The fund is structured as a variable capital company (VCC) in Singapore
– UBS plans to execute further live-pilot use cases under Project Guardian
– Tokenization brings off-chain assets on-chain and has the potential to reshape the financial system.
UBS Asset Management has launched a pilot of a tokenized money market fund on the Ethereum blockchain. The pilot enables UBS to test fund activities such as subscriptions and redemptions on the blockchain. The fund has been launched using UBS Tokenize, the firm’s in-house tokenization service. This move is part of UBS’s efforts to understand the tokenization of funds and improve market liquidity and access. UBS has been actively testing and utilizing blockchain technology, including launching the world’s first digital bond, a tokenized fixed-rate note, and fully digital structured notes. The pilot is part of Project Guardian, an industry initiative led by the Monetary Authority of Singapore. UBS plans to execute further live-pilot use cases under this initiative with a broader set of partners and explore various investment strategies. Tokenization is gaining popularity as it allows off-chain assets to be brought onto the blockchain, enabling tracking, trading, programmability, and management of these assets.
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