UBS Unveils uMINT Fund on Ethereum, Transforming Digital Finance Access

• UBS launches uMINT on Ethereum, enhancing digital asset access for institutional investors in secure, blockchain-based investments.
• UBS’s tokenized fund reflects a growing demand for risk-managed digital assets, blending traditional finance with blockchain technology.
• UBS joins major players like BlackRock and Franklin Templeton in advancing blockchain-driven tokenization in global finance.

UBS Asset Management has unveiled its first tokenized money market fund, “uMINT,” hosted on the Ethereum blockchain. This fund responds to the demand for digital assets from UBS’s global institutional client base, offering a secure, blockchain-based alternative for money market investments. Designed to strengthen cash management tools, the UBS USD Money Market Investment Fund Token, or “uMINT,” uses Ethereum’s distributed ledger for secure, streamlined transactions.

Expanding Digital Asset Access for Investors

By launching uMINT, UBS is enabling institutional investors to diversify their holdings through blockchain-based investments. This fund addresses the increasing appetite for digital assets and fits into a broader strategy to bridge traditional finance with innovative digital solutions. Thomas Kaegi, UBS’s Co-Head of Asset Management for the Asia-Pacific region, emphasized that this move aligns with UBS’s commitment to digital asset development. UBS’s dual-network approach incorporates both public and private blockchain infrastructure, ensuring enhanced security and efficient fund distribution.

Leveraging Blockchain for Secure Investments

In addition to utilizing Ethereum, UBS is active in Singapore’s Project Guardian, collaborating with regulatory and financial partners to advance institutional-level tokenized products. This initiative showcases UBS’s ambition to develop digital finance solutions on a global scale. By combining public and private blockchain networks, UBS is focused on delivering secure, risk-managed assets that attract institutional investors seeking regulated digital investment options.

UBS’s entry into blockchain-driven finance follows several key players in the finance sector. In 2023, UBS completed various transactions on public blockchains, including a cross-border digital bond repurchase agreement. Other industry leaders like Franklin Templeton and BlackRock are also embracing tokenization. For instance, Franklin Templeton recently expanded its tokenized money fund to the Base network, while BlackRock achieved $375 million in its USD Institutional Digital Liquidity Fund (BUIDL) by May 2024.

Tokenization’s Role in Future Finance

The rise of tokenization points to a transformative future in global finance. UBS’s uMINT fund joins a growing trend where blockchain-based assets offer new pathways for both asset managers and investors. As the finance sector continues to embrace tokenization, digital and traditional assets are expected to coexist within blockchain platforms, offering more flexible, innovative options for investors worldwide.