UBS Launches USD ‘Money Market Investment Fund Token’ on Ethereum

UBS, a leading global financial services company, has announced the launch of the UBS USD Money Market Investment Fund Token (uMINT), a blockchain-based investment product aimed at institutional investors seeking secure, digital financial options. 

uMINT represents UBS’s latest step toward integrating crypto and traditional finance.

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Introducing uMINT

uMINT serves as a tokenised fund on the Ethereum blockchain. The product’s strategy centres on high-quality money market instruments that offer liquidity while minimising risk. This approach supports institutional-level cash management with the advantage of faster transactions compared to traditional money market funds.

The fund is strategically set in Singapore, a hub for digital finance due to its favourable regulatory environment for blockchain assets, unlike certain Western countries (ahem). This reassures institutional investors interested in tokenised assets but hesitant due to regulatory uncertainties in other jurisdictions.

Real-world asset tokenisation is becoming a popular way to converge blockchain technology with traditional asset classes, allowing the synergy to reshape investment landscapes by offering new opportunities for both investors and asset owners.

In October, Franklin Templeton, one of the largest asset managers, brought its US$435M (AU$663M) tokenised money market fund, FOBXX, to the Aptos blockchain, an ecosystem that has been gaining attention in the layer-1 wars alongside other networks like Sui and Hedera.

The Rising Demand for Tokenised Products

Thomas Kaegi, Co-Head of UBS Asset Management Asia-Pacific, highlighted that uMINT aligns with the rising demand for tokenised financial products.

We have seen growing investor appetite for tokenized financial assets across asset classes. Through leveraging our global capabilities and collaborating with peers and regulators, we can now provide clients with an innovative solution

Thomas Kaegi, Co-Head of UBS Asset Management Asia-Pacific

This new fund complements UBS’s tokenisation service, UBS Tokenize, which simplifies the lifecycle of digital assets, from issuance to custody, making tokenised products accessible to a wider investor base.

Related: Aurum Debuts $1B Tokenised Fund on XRP Ledger, Targets Global Data Centre Investments with Zoniqx

All in all, UBS has been steadily advancing its blockchain initiatives. For instance, earlier this year, the firm issued digital structured notes on Ethereum and conducted a cross-border transaction with a digital bond on a public blockchain.