UBS Asset Management has initiated its inaugural live pilot of a tokenized Variable Capital Company (VCC) fund within Singapore, marking a significant achievement in the integration of tangible assets into blockchain technology.
This fund is a crucial component of Project Guardian, a collaborative industry endeavor spearheaded by the Monetary Authority of Singapore (MAS) aimed at examining the tokenization of diverse real-world assets.
Thomas Kaegi, Head of UBS Asset Management in Singapore and Southeast Asia, remarked, “This represents a pivotal moment in our comprehension of fund tokenization, building upon UBS’ proficiency in tokenizing bonds and structured products.”
Leveraging UBS’s proprietary tokenization service, UBS Tokenize, the firm has introduced a controlled pilot of a tokenized money market fund operating on the Ethereum blockchain. This implementation facilitates on-chain processes such as fund subscriptions and redemptions.
UBS has consistently led the charge in digital asset innovation, commencing with the world’s first publicly traded digital bond in November 2022. Subsequently, they issued a $50 million tokenized fixed-rate bond in December 2022, as well as over $28 million in tokenized structured notes in 2023.
Following the successful execution of pilot transactions, UBS Asset Management plans to undertake additional live use cases under Project Guardian, collaborating with more partners to explore a variety of investment strategies.
The trend of fund tokenization is steadily gaining traction among traditional funds and asset managers, with prominent institutions like Franklin Templeton, KKR, and Hamilton Lane also launching their own tokenized funds.
UBS Asset Management has initiated its inaugural live pilot of a tokenized Variable Capital Company (VCC) fund within Singapore, marking a significant achievement in the integration of tangible assets into blockchain technology.
This fund is a crucial component of Project Guardian, a collaborative industry endeavor spearheaded by the Monetary Authority of Singapore (MAS) aimed at examining the tokenization of diverse real-world assets.
Thomas Kaegi, Head of UBS Asset Management in Singapore and Southeast Asia, remarked, “This represents a pivotal moment in our comprehension of fund tokenization, building upon UBS’ proficiency in tokenizing bonds and structured products.”
Leveraging UBS’s proprietary tokenization service, UBS Tokenize, the firm has introduced a controlled pilot of a tokenized money market fund operating on the Ethereum blockchain. This implementation facilitates on-chain processes such as fund subscriptions and redemptions.
UBS has consistently led the charge in digital asset innovation, commencing with the world’s first publicly traded digital bond in November 2022. Subsequently, they issued a $50 million tokenized fixed-rate bond in December 2022, as well as over $28 million in tokenized structured notes in 2023.
Following the successful execution of pilot transactions, UBS Asset Management plans to undertake additional live use cases under Project Guardian, collaborating with more partners to explore a variety of investment strategies.
The trend of fund tokenization is steadily gaining traction among traditional funds and asset managers, with prominent institutions like Franklin Templeton, KKR, and Hamilton Lane also launching their own tokenized funds.