Swiss bank UBS launched a tokenized money market fund on Ethereum
Leading Swiss bank UBS has launched a live pilot of its Variable Capital Company (VCC) fund, part of Project Guardian, led by Singapore's central bank.
In a press release, UBS Asset Management announced that the fund is part of a broader VCC umbrella designed to bring a variety of real-world assets (RWA) to the blockchain. UBS Head of Asset Management for Singapore and Southeast Asia, Thomas Keagie, said the project was a major milestone in understanding financial tokens. Kegi said:
“Through this survey initiative, we will partner with traditional financial institutions and fintech providers to understand how to improve market flow and market access for customers.”
UBS Asset Management has launched a regulated money market fund through the company's in-house tokenization service, UBS Tokenize. Using smart contracts on Ethereum, the organization has performed various functions including redemptions and fund registrations.
The pilot is part of the company's global distributed ledger technology strategy, which focuses on improving the distribution and supply of funds through private and public blockchains.
Related: Singapore gets $112M to support fintech solutions like Web3
The new development recognizes previous predictions on RWAs tokenization. During a panel discussion at the 2023 World Token Summit, UAE government adviser Ellis Wang told Cointelegraph that the tokenization of RWAs offers various benefits, such as transparency and security, which are features embedded in blockchain. According to the executive, the tokenization of RWAs can hold, because it presents important opportunities for many industries.
Earlier this year, protocols focusing on RWAs became the talk of the town as they outperformed other sub-sectors of decentralized finance. On June 9, RWA token platform Centrifuge token acquisitions increased by 32% year-to-date.
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