UBS Launches Pilot for an Ethereum-Based Money Market Fund

UBS Asset Management, the Swiss asset manager with $3.1T of AUM, announced on Monday, the launch of a live pilot of a tokenized Variable Capital Company (VCC) fund in Singapore.

• The pilot project is part of a broader VCC umbrella, with the aim of tokenizing various real-world assets.
• This initiative stems from Project Guardian, an industry collaboration led by the Monetary Authority of Singapore (MAS).
• Thomas Kaegi, Head of UBS Asset Management Singapore & Southeast Asia, states this is a crucial step in understanding fund tokenization, and highlights the firm’s existing expertise in tokenizing bonds and structured products.
• The pilot relies on UBS Tokenize, UBS’s in-house tokenization platform, to facilitate a controlled launch of a tokenized money market fund.
• Represented as a smart contract on the Ethereum public blockchain, the pilot allows UBS Asset Management to track various activities, including fund subscriptions and redemptions.
• UBS Asset Management’s tokenization pilot is central to their global distributed ledger technology strategy, which emphasizes the use of public and private blockchain networks to enhance fund issuance and distribution.
• The pilot builds upon UBS’s ongoing expansion of its tokenization services via UBS Tokenize. In 2022 and 2023, UBS issued the first publicly traded digital bond and other notable tokenized products.
• Post success of this pilot, UBS Asset Management aims to initiate further live pilot use cases within Project Guardian, in collaboration with a wider set of partners, to test various investment strategies.

This post was written with help from AI.