A tokenized money market fund on the Ethereum blockchain has begun its first “live pilot” with UBS Asset Management, a significant global fund management firm. UBS is investigating on-chain procedures like subscriptions and redemptions using its exclusive solution, UBS Tokenize.
UBS Asset Management intends to carry out various fund-related activities on the blockchain through this pilot initiative, including subscriptions and redemptions. According to Thomas Kaegi, head of UBS Asset Management for Singapore and Southeast Asia, this project is a critical first step in realizing the promise of tokenizing various financial assets beyond only bonds.
UBS Asset Management said in a press release that the fund is a component of a larger VCC umbrella created to move various real-world assets (RWA) on the blockchain. Thomas Kaegi claims that the project marks a turning point in understanding money tokenization. He said, “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.”
UBS Assesses the Financial Future
The Ethereum-based pilot represents a crucial turning point in UBS’s journey toward financial instruments based on blockchain technology. It accomplishes two things: it gives UBS significant expertise and advances the industry’s understanding of how blockchain might improve market liquidity and client accessibility.
This pilot project debuts at a time when anticipation of the potential benefits of blockchain technology and tokenization is already apparent throughout the entire global financial sector. Although it is only a pilot, UBS’s project goes beyond a simple test and provides a model for how conventional financial institutions may combine their current procedures with the disruptive potential of blockchain technology.
