UBS Asset Management launched “uMINT,” an Ethereum-based money market fund in Singapore, aiming to attract institutional investors with enhanced transparency and security.
Ethereum-Based Money Market Fund
UBS Asset Management, a large-scale investment manager with a presence in 50 markets, has announced the launch of the “UBS USD Money Market Investment Fund Token” (“uMINT”), a money market investment that is based on Ethereum distributed ledger technology.
Thomas Kaegi, the Co-Head of UBS Asset Management, stated in the official report published on November 1 that the launch of uMINT was a response to the increasing demand among investors for tokenized financial assets across asset classes.
The Monetary Authority of Singapore (MAS) has actively promoted the expansion of digital assets, which has created an optimal environment for UBS’s new offering.
This has been advantageous for the company. uMINT will be established in Singapore by UBS in order to capitalize on the regulatory clarity and attract institutional investors who may be hesitant about tokenized assets.
This Singapore-based fund will employ the Ethereum blockchain to provide investors with a cash management solution of institutional quality that is based on high-quality money market instruments and ensures controlled risk.
Ethereum’s improved transparency is one of the most critical aspects of uMINT. The fund’s activities will be verified in real-time by investors, as each transaction within the fund will be documented on a public ledger.
A critical factor in investment management is security. To address the persistent security concern, Ethereum’s decentralized ledger technology (DLT) offers a decentralized environment that reduces the likelihood of fraud and hijacking.
Advanced encryption models protect assets, ensuring that both institutional and retail investors can feel more confident about their investments in uMINT.
The tokenization of the Money Market Investment Fund Token has the potential to considerably increase liquidity, thereby enabling the faster purchase and sale of fund shares. This is particularly advantageous for institutional clients who necessitate responsiveness and flexible investment strategies.
UBS on Tokenization
UBS Tokenize, its proprietary tokenization service, has been utilized to improve its digital asset offerings. By reducing barriers and providing a broader spectrum of market participants with access to a variety of products and services, this initiative seeks to capitalize on the decentralized finance sector, thereby promoting stronger connections among them.
As a founding member of Fnality, an institutional settlement network that enables the tokenization of balances in central bank accounts, UBS plays a substantial role in tokenized currency.
The corporation issued digital structured notes on the Ethereum network in June 2023, with a value of RMB 200 million (approximately $28 million). UBS, in partnership with DBS and SBI Digital Asset Holdings, executed the world’s first cross-border repo transaction on a public blockchain later that year.
DBS is a prominent financial services group in Asia, with a presence in 19 markets. SBI Digital Assets Holdings (SBI DAH) is responsible for the oversight and operation of digital asset-related enterprises under the umbrella of SBI Holdings.
Numerous tokenized money market funds have entered the market this year, such as Franklin Templeton’s FOBXX and BlackRock’s BUIDL. Additionally, Goldman Sachs intends to implement its own tokenized fund in the near future.
