Bybit integrates UBS’s tokenized fund as collateral. This move connects TradFi assets to the Web3 trading ecosystem.
Bybit, the world’s second-largest crypto exchange, announced a major integration. This occurred on Monday, October 13th. The firm joined forces with global bank UBS. This partnership will bridge traditional finance (TradFi) and Web3 innovation. The meeting point of these two spaces continues to accelerate throughout the world.
Institutional Collaboration Pushes Tokenized Fund into Trading
Specifically, Bybit will allow its traders to use the uMint fund. This tokenized investment fund was initiated by UBS. Users can now use the shares of the fund as trading collateral directly. This is a huge achievement in the digital asset economy. Therefore, this initiative furthers the mission of Bybit to a substantial degree.
The UBS uMINT is a Money Market investment fund. It is entirely based on the Ethereum public blockchain. Furthermore, UBS Asset Management is the issuer of these tokenized shares. The fund opened up to investors from outside India in November 2024. This created a new regulated product category.
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The shares are distributed through the authorized partners. DigiFT is the largest distributor at present in the of volumes. DigiFT is a licensed platform of real-world assets (RWA). It is regulated by both MAS and the Hong Kong SFC. This ensures institutional-grade compliance of the entire process.
Ben Zhou, Co-Founder and CEO of Bybit, commented on the alliance. He called DigiFT an innovator in the regulated blockchain distribution. Subsequently, he indicated that this collaboration leads to opportunities for institutions. They can derive more utility from their tokenized goods. This integration is essential for the growth of the market.
The investors holding the UBS tokenized fund will be beneficiaries of it to a great extent. They can now instantaneously use their shares as trading collateral. In fact, this provides a secure and cost-efficient approach. Zhou said such a partnership is an important step. He added it is a successful bridge between Web2 finance and Web3 innovation.
Bybit Advances TradFi Integration with UBS uMINT Token Launch
This move is a boon to Bybit’s institutional service portfolio. Moreover, it is directly supporting the firm’s B2B strategy. This strategy is to bring on more of the traditional institutions. They want to bring these firms to the digital asset space in a full-fledged manner. This is key for mass adoption.
Bybit has regulated tokenized products such as the UBS fund. It is specifically integrating the UBS uMINT token through DigiFT. As a result, Bybit still sets new records for the industry. It prioritizes trust, transparency, and innovation. This is extremely critical for the success of crypto-TradFi integration.
This collaboration is extremely significant to the RWA sector. It shows an obvious way of tokenized assets. They can shift from passive investment to active utility easily. Thus, it gives a significant liquidity boost to these regulated tokens. This makes them much more appealing to the market.
The partnership gives greater security to the collateral used. The UBS fund is a regulated money market product. Therefore, this offers an established and low-risk asset base. This is much more secure than using volatile, unbacked crypto assets. This stamp of regulatory approval is vital.