News from late last week that UBS Asset Management has debuted a USD Money Market Investment Fund Token
- Represents latest move into blockchain-based financial products
- Part of broader UBS Tokenize initiative
- Follows successful digital bond repo transaction in November 2023
More:
- Fund built on Ethereum blockchain technology
- Builds on UBS’s prior tokenization projects including CNH200M digital structured notes
- UBS previously piloted tokenized VCC fund with Singapore’s MAS Project Guardian
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Fund tokenization involves using blockchain-based digital tokens to represent fund ownership, much like transfer agents currently record fund shares. Initially, companies used special purpose vehicles (SPVs) for tokenizing assets like real estate. Similarly, tokenized funds can use established structures such as unit trusts or fund company vehicles.
A recent white paper from Invesco, Boston Consulting Group, and Aptos Labs projects that tokenized fund assets under management (AuM) could reach $600 billion by 2030.
