UBS launches first tokenized investment fund on Ethereum

UBS Asset Management introduced the first tokenized investment fund on Ethereum.

The fund, called “UBS USD Money Market Investment Fund Token” or “uMINT”, is built on Ethereum (ETH) for various authorized distribution partners across Singapore, according to UBS.

Tokenization is a process that turns traditional assets, such as stocks or bonds, into digital tokens that can be managed on a blockchain, the decentralized technology that underpins cryptocurrencies such as Bitcoin (BTC) and Ethereum.

These digital tokens represent a fraction of the asset, allowing investors to buy, sell or hold a portion of traditional financial products more efficiently.

UBS aims to capitalize on the growing demand for tokenization by leveraging its global resources and regulatory collaborations. Investors purchasing tokens in the uMINT fund will gain access to institutional-grade money market assets within a conservative, risk-managed framework.

Tokenization across TradFi

Major financial institutions are increasingly exploring tokenization. Earlier this week, Franklin Templeton added Coinbase Base as the sixth blockchain to support OnChain U.S. Government Money Market Fund, allowing transactions on its layer-2 network.

Wellington Management also collaborated with Ondo Finance to increase the liquidity of its recently launched tokenized US Treasury Fund.

The partnership aims to make traditional assets such as Treasury bonds more accessible through tokenization and blockchain technology.