A Tokenized Fund on Ethereum Blockchain

UBS, the world’s largest private bank, has taken a significant step into digital finance with the introduction of the UBS USD Money Market Investment Fund Token, or “uMINT.” Built on the Ethereum blockchain, this new tokenized fund brings together the world of traditional banking and the growing interest in digital assets.

UBS’s Move into Digital Assets

Announced on November 1, uMINT reflects UBS’s dedication to meeting the growing interest in digital assets, especially through tokenized investments. This new fund provides UBS clients with a secure and straightforward option for managing their cash investments, all within a low-risk framework.

According to Thomas Kaegi, Co-Head of UBS Asset Management in Asia Pacific, more investors are eager to explore digital assets, prompting UBS to work closely with regulators and partners worldwide to create a safe and innovative solution.

This move has generated excitement in the digital finance world. Crypto commentator Mario Nawfal’s Roundtable celebrated the launch, calling it “like putting Ethereum into traditional finance.” 

With major banks like UBS embracing blockchain, there’s growing confidence that tokenized assets could soon gain mainstream acceptance.

UBS Tokenize: Simplifying Digital Investments

This new fund, uMINT, is just one part of UBS’s larger plan for digital finance. UBS recently developed its internal tokenization service, called UBS Tokenize, to help with digital asset management. 

In October 2023, UBS tested this service by running a trial of a tokenized money market fund on Ethereum. Through UBS Tokenize, the bank can handle all steps of an asset’s life from issuing to managing and making digital finance simpler and more accessible for clients.

UBS has also joined Singapore’s Project Guardian, a government-backed initiative to explore digital finance solutions.

Ethereum: Leader in Real-World Asset 

Ethereum has taken the lead in real-world asset tokenization, holding over $3 billion in tokenized assets. Excluding private credit, the total on Ethereum’s blockchain stands at roughly $3.9 billion, with U.S. Treasury Debt making up the largest share.

In the past month alone, tokenized assets on Ethereum have grown by nearly 4%. BlackRock’s $BUIDL tops the list, backed by U.S. Treasuries and valued at over $523 million, followed by Franklin Templeton’s $FOBXX at around $408 million.

Ethereum’s role is rapidly expanding as it transforms into a major platform for tokenizing real-world assets!