Swiss banking titan UBS is delving into the blockchain space, unveiling a pilot program that integrates a tokenized money market fund on the Ethereum blockchain. This development is revealed to be a part of a broader strategy by UBS Asset Management to harness distributed ledger technology (DLT) in optimizing fund issuance and distribution processes.
The initiative, branded as the “first blockchain-native tokenized VCC fund pilot” in Singapore, is a collaborative effort facilitated by the Monetary Authority of Singapore (MAS). UBS is employing its proprietary tokenization service, UBS Tokenize, in this venture. The service is equipped with functionalities that enable the management of fund subscriptions and redemptions via smart contracts, offering a seamless and efficient process.
Thomas Kaegi, the Head of UBS Asset Management in Singapore & Southeast Asia, lauded this development as a pivotal moment in the exploration of fund tokenization. Building on UBS’s established proficiency in tokenizing bonds and structured products, this initiative aims to unravel insights on enhancing market liquidity and accessibility for clients, collaborating with both conventional financial entities and fintech innovators.
UBS Asset Management is setting its sights on expanding the horizons of this pilot. Under the banner of Project Guardian, the firm is keen on executing an array of live pilot use cases, broadening its collaborative ecosystem and investigating diverse investment strategies.
This pioneering move by UBS underscores the escalating interest and integration of blockchain technology in traditional financial spaces. By embedding DLT into its operational fabric, UBS is not only optimizing its internal processes but is also poised to offer its clientele enhanced efficiency, security, and innovation in fund management and transactions.