UBS Asset Management launches uMINT, its first tokenized money market fund in Singapore, utilizing Ethereum technology to attract institutional investors.
UBS Asset Management has announced the launch of its first tokenized money market fund, called uMINT. This initiative is set to begin in Singapore. The fund is built on Ethereum’s distributed ledger technology (DLT) and is designed for institutional investors.
The uMINT fund will be classified as a UBS USD Money Market Investment Fund Token. In addition, this launch shows that innovative financial solutions are part of UBS’s strategy.
The co-head of Asia Pacific at UBS Asset Management, Thomas Kaegi, noted that investors are increasingly interested in tokenizing financial assets. He underlined that UBS has delivered this specific solution to clients while tapping into the company’s global advantage.
Furthermore, the firm has worked with its competitors and governments to improve its services. This strategic approach is also consistent with UBS’s vision and helps to achieve the objective of enhancing the product range using new technological developments. Thus, UBS’s goal is to respond to the new market requirements and strengthen its role as an industry leader by adopting these advancements.
UBS Expands Digital Asset Offerings with uMINT Fund Launch
The uMINT fund seeks to offer investors an institutional-grade cash management solution. It stresses moderate risk and targets high-quality money market instruments. This approach is expected to attract institutional clients seeking steady investment instruments.
UBS has been involved in the digital asset market. This year, the firm was involved in the Monetary Authority of Singapore’s Project Guardian. In October 2023, UBS started a live pilot on a tokenized VCC fund for the first time. This engagement also demonstrates UBS’s active role in the search for new financial technologies.
Moreover, in June 2023, UBS introduced its digital structured notes totaling RMB 200 million (approximately S$37.16 million) regarding third parties. This proved that the firm could develop new products and services within the digital finance environment. Additionally, in November 2023, UBS achieved the world’s first cross-border repo transaction executed and settled using only distributed digital ledger technology.
These approaches suggest that UBS wants to be at the helm of the new financial environment. Thus, with the help of the uMINT fund, UBS not only broadened the list of its products but also became a market leader in the tokenized asset market.
As the financial industry absorbs technological innovation opportunities, UBS Asset Management is expected to impact institutional investment through blockchain technology majorly. Ultimately, the launch of uMINT marks an important step in this direction.
