UBS' Tokenized Money Market Fund Goes Live on Ethereum Blockchain
Leading Swiss asset management bank UBS has announced the debut of its first live pilot of a tokenized Variable Capital Company (VCC) fund on the Ethereum blockchain in Singapore.
In the published press release, the company stated that the money market fund is part of a wider VCC umbrella built to integrate various real-world assets into the blockchain.
The UBS pilot is part of Project Guardian, a collaborative industry initiative to tokenize real-world assets. It is controlled by the Monetary Authority of Singapore (MAS), the city-state's central bank and financial watchdog.
The VCC fund represents a legal entity for investment funds in Singapore, initially introduced in January 2020 to solidify the city-state's position as a hub for fund management operations.
Thomas Kaegi, the Head of UBS Asset Management for Singapore and Southeast Asia, highlighted that the launch of the live VCC marks a significant milestone in the exploration of fund tokenization.
He also expressed the firm's commitment to partnering with traditional financial institutions and fintech providers to enhance market accessibility for investors.
These collaborations will contribute to gaining insights into improving market liquidity for their clients.
According to the public announcement, the asset management bank rolled out the controlled pilot of the tokenized money market fund through its in-house tokenization service dubbed 'UBS Tokenize.'
Through smart contracts deployed on the Ethereum public blockchain, the live pilot enables the firm to process various activities such as subscriptions and redemptions.
Following the successful rollout of UBS's first pilot transactions, the asset management firm intends to expand its offerings under Project Guardian
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