Swiss multinational investment bank and financial services company UBS is launching a “tokenized money market fund” pilot program on Ethereum (ETH).
In a new blog post, UBS Asset Management announces what it calls the “first blockchain-native tokenized VCC fund pilot” in Singapore.
Says Thomas Kaegi, Head of UBS Asset Management, Singapore & Southeast Asia,
“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products. Through this exploratory initiative, we will work with traditional financial institutions and fintech providers to help understand how to improve market liquidity and market access for clients.”
UBS says the pilot program, led by the Monetary Authority of Singapore (MAS), uses UBS Tokenize, the company’s in-house tokenization service, which allows for fund subscriptions and redemptions to be managed through a smart contract.
The announcement goes on to state that this initiative is a part of the company’s global strategy to enhance fund issuance and distribution by utilizing distributed ledger technology(DLT) on both public and private blockchain networks. The tokenization services are being expanded by UBS through its UBS Tokenize program.
According to the company,
“Following the successful launch of the first pilot transactions, UBS Asset Management will be looking to execute further live pilot use cases under Project Guardian – working with a wider set of partners and explore various investment strategies.”
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