$5.7T Asset Manager UBS Breaks Ground With Ethereum-Based Money Market Fund

Key Takeaways

• UBS has launched an Ethereum-based money market fund.
• The Swiss asset management giant has actively been involved in tokenized products.
• UBS joins the growing list of traditional asset managers turning to tokenized solutions.

Swiss asset management giant UBS has launched a tokenized money market fund on Ethereum.

The $5.7 trillion firm is the latest traditional asset manager to turn to tokenized solutions, joining a growing list of institutional players embracing decentralized technology.

UBS Launches uMINT

The USD Money Market Investment Fund, dubbed uMINT, is UBS’ first foray into tokenized funds.

The Singapore-based fund will use Ethereum to provide investors with an institutional-grade cash management solution, supporting high-quality money market instruments with controlled risk.

UBS co-head of Asset Management Asia-Pacific, Thomas Kaegi, highlighted the growing demand for tokenized financial assets across asset classes, saying,

 “We have seen 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.”

The Swiss asset management giant started the pilot version of the tokenized fund in October 2023 under Project Guardian, an initiative by the Monetary Authority of Singapore.

UBS’s move is part of a larger trend in the crypto market, where institutional players are increasingly turning to tokenization.

This year, several tokenized money market funds  have emerged, including Blackrock’s BUIDL and Franklin Templeton’s FOBXX . Goldman Sachs is also planning to launch its own tokenized fund in the near future.

UBS’ Experience With Tokenization

This is not UBS’s first experiment with tokenization.

In June 2023, the firm issued digital structured notes worth RMB 200 million ($28 million) on the Ethereum network.

Later that year, UBS completed the world’s first cross-border repo transaction on a public blockchain with banking partners DBS and SBI Digital Asset Holdings.

The firm is also involved in tokenized cash through its role as a founder of Fnality, an institutional settlement network that tokenizes balances held at a central bank account.