Wealth manager UBS Asset Management has launched its first tokenized investment fund built on Ethereum distributed ledger technology.

The UBS USD Money Market Investment Fund Token (UMINT) enables token investors seeking institutional and risk-averse cash management options to access UBS Asset Mangement's solutions, with an Ethereum-based structure that aims to facilitate real-time transparency, reduce transaction friction, and improve security.

UBS added it is partnering with distribution networks authoriszed to onboard clients into the fund.

The $5.7 trillion banking giant has been expanding its digital asset offering through UBS Tokenize, its in-house tokenization service launched in June 2023, which seeks to bridge a gap between traditional and decentralised finance ecosystems.

UBS Tokenize aims to support opportunities throughout the whole asset lifecycle including origination, issuance, distribution, and custody - initially focusing on tokenization of bonds, funds, and structured products.

Thomas Kaegi, co head of UBS Asset Management APAC, said, “We have seen growing investor appetite for tokenized financial assets across asset classes. Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution.”

UBS Asset Management's global distributed ledger technology strategy is focused on using public and private blockchain networks to enhance the issuance and distribution of funds.

As an active partner of the Monetary Authority of Singapore's Project Guardian initiative, UBS Asset Management launched a pilot of a Variable Capital Company (VCC) tokenized fund in October 2023.

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