A major investment player, UBS Asset Management, has launched its first live pilot of a tokenized money market fund on the Ethereum blockchain.
This project enables on-chain fund activities like subscriptions and redemptions, streamlining fund management using UBS Tokenize, the company’s in-house tokenization service.
Thomas Kaegi, Head of UBS Asset Management, Singapore and Southeast Asia, said, “This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products.”
This experiment’s objective is to explore the applicability of these technologies in finance and the simplification of individual investment decision processes. UBS has been toying with blockchain for many years when it comes to digital bonds and other financial products.
This test forms part of a larger effort by the Singapore government to improve investment practices. In case of success, UBS might opt to expand cooperation within projects to the level of engaging in investments of other types.
UBS Asset Management’s exploration of the Ethereum blockchain for money market funds signifies a promising step towards streamlining financial investments through innovative technology.