UBS has Decided to Use Ethereum to Test a Tokenized Money Market Fund

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Last Updated on October 2, 2023 by Bitfinsider

One of the world’s leading fund houses, UBS Asset Management, has launched its first “live pilot” of a tokenized money market fund on the Ethereum blockchain.

According to the firm, the pilot allows UBS Asset Management to evaluate various fund actions on-chain, such as subscriptions and redemptions. UBS Tokenize, an in-house tokenization service, was used to establish the fund’s trial.

“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products,” said Thomas Kaegi, head of UBS Asset Management in Singapore and Southeast Asia, in a statement. “Through this exploratory initiative, we will work with traditional financial institutions and fintech providers to help understand how to improve market liquidity and market access for clients.”

According to UBS, the most recent tokenized money market fund experiment is part of Project Guardian, a collaborative industry project sponsored by the Monetary Authority of Singapore (MAS). The fund is organized as a variable capital company (VCC), a new legal entity form in Singapore for all forms of investment vehicles.

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