UBS Asset Management has launched its inaugural tokenized investment fund on the Ethereum blockchain. Dubbed the “UBS USD Money Market Investment Fund Token,” or ‘uMINT,’ this fund is designed for various approved distribution partners in Singapore, as reported by UBS.
Tokenization refers to the process of transforming conventional assets, such as stocks or bonds, into digital tokens that can be managed on a blockchain—the underlying decentralized technology for cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). These digital tokens provide a representation of ownership in these assets, allowing investors to more efficiently buy, sell, or hold portions of traditional financial products.
UBS is looking to take advantage of the growing interest in tokenization by utilizing its global capabilities and regulatory partnerships. Investors who acquire tokens in the uMINT fund will have access to institutional-grade money market assets, all within a conservative and risk-managed framework.
In a broader trend, major financial institutions are increasingly delving into tokenization. Earlier this week, Franklin Templeton integrated Coinbase’s Base as the sixth blockchain supporting its OnChain U.S. Government Money Market Fund, enabling trading on the layer-2 network. Additionally, Wellington Management has teamed up with Ondo Finance to enhance liquidity for its newly launched tokenized U.S. Treasury Fund. This collaboration aims to make traditional assets, such as Treasury bonds, more accessible through the use of tokenization and blockchain technology.