IMPORTANT POINTS:
- UBS launches a pilot program of a “tokenized money market fund” on Ethereum in Singapore.
- The program is led by the Monetary Authority of Singapore and makes use of UBS Tokenize to handle subscriptions and redemptions.
- UBS is seeking to enhance liquidity and market entry for purchasers by tokenizing funds and plans to develop its providers on blockchain.
UBS, the Swiss funding financial institution, has introduced the launch of a pilot program of a “tokenized money market fund” on the Ethereum (ETH) community. This initiative is going down in Singapore and is taken into account the “first blockchain-native tokenized VCC fund pilot” within the area.
The pilot program is led by the Monetary Authority of Singapore (MAS) and makes use of UBS Tokenize, the in-house tokenization service developed by UBS. This service lets you handle subscriptions and redemptions of funds via good contracts on the Ethereum blockchain.
Thomas Kaegi, Head of UBS Asset Management in Singapore and Southeast Asia, highlighted the significance of this milestone in fund tokenization. UBS seeks to collaborate with conventional monetary establishments and fintech suppliers to enhance liquidity and market entry for purchasers.
This step is a part of UBS’ international technique to make use of distributed ledger know-how (DLT) in blockchain networks, each private and non-private, with the goal of bettering the issuance and distribution of funds. The financial institution plans to additional develop its tokenization providers via its UBS Tokenize program.
The announcement additionally talked about that, following the profitable launch of the primary pilot transactions, UBS Asset Management plans to hold out extra pilot use circumstances below the Guardian challenge. These pilots will contain a broader set of companions and discover numerous funding methods.
