On November 1, 2024, UBS Asset Management launched its first tokenized fund, the "UBS USD Money Market Investment Fund Token" (uMINT), on the Ethereum blockchain, aimed at enhancing client access to investment solutions.
This innovative product allows token holders to engage with UBS's institutional-grade cash management strategy, utilizing high-quality money market instruments within a conservative risk framework. Thomas Kaegi, Co-Head of UBS Asset Management, highlighted the growing investor interest in tokenized assets, stating that the firm aims to leverage its global capabilities to provide innovative financial solutions.
The launch is part of UBS's broader "UBS Tokenize" initiative, which began in June 2023 and includes creating digitally structured notes and executing cross-border transactions using digital bonds on public blockchains. As of Q4 2023, UBS manages $5.7 trillion in client assets across over 50 markets.
Tokenization, particularly of traditional assets like US Treasury-backed money market funds, has gained traction among major financial firms, with the US Treasury Department recognizing its potential to enhance market efficiency and transparency.