UBS Revolutionizes Finance with Tokenized Fund Pilot on Ethereum
UBS, the Swiss multinational investment bank and financial services company, is embarking on an innovative initiative by introducing a "tokenized money market fund" pilot program on the Ethereum (ETH) blockchain.
In a recent announcement by UBS Asset Management, they unveiled what they describe as the inaugural “blockchain-native tokenized VCC fund pilot” in Singapore.
Thomas Kaegi, the Head of UBS Asset Management for Singapore and Southeast Asia, commented on this significant development, expressing that this is a pivotal step in delving into the realm of fund tokenization.
They aim to collaborate with traditional financial institutions and fintech innovators to enhance market liquidity and improve market accessibility for valued clients.
UBS further explains that this pilot initiative, overseen by the Monetary Authority of Singapore (MAS), leverages UBS Tokenize, the in-house tokenization service provided by the company. This service facilitates fund subscriptions and redemptions through the execution of smart contracts.
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The official announcement further outlines that this undertaking aligns seamlessly with the company’s global strategy to elevate fund issuance and distribution by harnessing distributed ledger technology (DLT) on both public and private blockchain networks. UBS is actively expanding its tokenization services via the UBS Tokenize program.
In the company’s own words, following the successful inauguration of the initial pilot transactions, UBS Asset Management is poised to execute additional live pilot use cases under Project Guardian. This endeavor will involve a broader range of collaborators and will explore diverse investment strategies.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
