UBS Debuts Tokenized Money Market Fund on Ethereum

Leading banking institution based in Switzerland, UBS, has debuted a live pilot of a tokenized version of its Variable Capital Company (VCC) fund. This step is a part of a broader project spearheaded by the central bank of Singapore called Project Guardian. 

UBS Debuts New Money Market Fund

As per a press release submitted on October 2, UBS Asset Management confirmed that the fund is part of a wider VCC umbrella and has been created to bring a variety of real-world assets (RWA) to the blockchain industry. Thomas Kaegi, Head UBS Asset Management, Singapore & Southeast Asia, noted:

“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products. 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.”

A Significant Milestone

The financial institution stated that it launched the controlled pilot of the tokenized money market fund via its own in-house tokenization service called UBS Tokenize. The fund is capable of utilizing a smart contract on the leading blockchain network Ethereum and carry out certain activities like redemptions and fund subscriptions.

This is also a part of the firm’s global distributed ledger technology (DLT) strategy via which the financial institution seeks to enhance fund distribution and issuance with the usage of public and private blockchains. 

UBS Acquires Credit Suisse

As reported earlier by TheCoinRise, UBS acquired Credit Suisse, its struggling rival, in March 2023. As part of an “emergency legislation,” the former paid $3.25 billion to close the purchase, which is 60% of what Credit Suisse was worth at that time. The company was bought at a significant discount to Credit Suisse’s market value of $8 billion as of March 17. 

In late 2022, UBS also became the first financial service provider to onboard a digital bond that is publicly traded and settled on both blockchain-based and traditional exchanges.