Swiss financial giant UBS has introduced its first tokenized investment fund, uMINT, a money market fund built on Ethereum's distributed ledger technology. The fund will be distributed through authorized partners, marking a significant step in institutional adoption of blockchain-based financial products.
UBS Tokenize Expands Its Tokenization Services
In October 2023, UBS initiated a pilot for tokenized money market funds on Ethereum as part of Singapore's Project Guardian led by the Monetary Authority of Singapore (MAS). The experiment focused on issuing Variable Capital Company (VCC) funds directly on digital asset networks to enhance fund distribution efficiency and secondary market trading.
Leveraging its proprietary UBS Tokenize platform, UBS Asset Management continues to broaden tokenization services across asset lifecycles—from origination and issuance to distribution and custody. Initially targeting bonds, funds, and structured products, the platform has now delivered its flagship tokenized fund: uMINT.
Thomas Kaegi, Head of APAC at UBS Asset Management, stated:
"We observe growing investor interest in tokenized financial assets across asset classes. By collaborating with peers and regulators, we’re delivering innovative solutions to clients globally."
Traditional Finance Giants Embrace RWA: A Promising Future
According to RWA.xyz, on-chain Real World Assets (RWA) total $3.9 billion** (excluding private credit). Ethereum dominates as the leading blockchain for RWA tokenization, hosting over **$3 billion in tokenized assets—primarily U.S. Treasuries ($2.4 billion).
Key institutional players include:
- BlackRock's BUIDL: Leading with $523M in U.S. Treasury products.
- Franklin Templeton's FOBXX: A $408M on-chain U.S. government money market fund.
What Are RWAs?
RWAs represent tangible/intangible real-world assets tokenized on blockchain, bridging Traditional Finance (TradFi) with DeFi. Benefits include:
- Enhanced efficiency, transparency, and speed for TradFi.
- Access to traditional investment products for Web3 users.
- Liquidity injection into DeFi ecosystems.
👉 Explore how institutions are adopting blockchain finance
The participation of UBS, BlackRock, and Franklin Templeton signals growing market acceptance of tokenization.
(Related: Franklin Templeton Launches Tokenized Treasury Fund FOBXX on Base)
FAQ Section
Q1: What makes uMINT different from traditional money market funds?
A1: uMINT leverages Ethereum’s blockchain for instant settlement, 24/7 trading, and enhanced transparency while maintaining regulatory compliance.
Q2: How does tokenization improve investment efficiency?
A2: Tokenization reduces intermediaries, lowers costs, and enables fractional ownership—democratizing access to premium assets.
Q3: Is Ethereum the only blockchain for RWAs?
A3: While Ethereum leads, other chains like Base and Polygon are gaining traction for specific institutional use cases.
Q4: What risks should investors consider with tokenized funds?
A4: Smart contract vulnerabilities, regulatory uncertainty, and market volatility require careful risk assessment.
👉 Discover institutional-grade crypto investment strategies
Risk Disclosure
Cryptocurrency investments carry high volatility and risk of capital loss. Conduct thorough due diligence before investing.
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