In a groundbreaking move, UBS, the world’s largest private bank, has introduced uMINT or “UBS USD Money Market Investment Fund Token,” a tokenized investment fund on the Ethereum Blockchain. This launch reflects the growing interest of investors in tokenized financial assets, which allow traditional products to be digitized and offered on blockchain platforms, creating access to financial instruments more efficiently.
A fund based on money market instruments
Although UBS did not specify the exact instruments that make up the fund, it mentioned in its statement that uMINT provides access to high-quality money market instruments. These are designed under a conservative risk management framework, ideal for those investors looking for a reliable option in the world of digital assets.
“We have seen a growing appetite for tokenized financial assets across various asset classes,” said Thomas Kaegi, co-head of Asia at UBS.
Ethereum leads in tokenization of real assets
Ethereum is positioned as the leading blockchain for tokenizing real assets, with more than $3 billion in tokenized assets on its network, according to the RWA.xyz dashboard.
This growing market ranges from US treasury debt to investment funds, and the value of assets tokenized on Ethereum has grown close to 4% in the last month. Featured products include BlackRock’s $BUIDL, with a market value of $523 million, and Franklin Templeton’s $FOBXX, which has a market value of approximately $408 million.
The advance of tokenization and its benefits
Tokenization of traditional assets on blockchains like Ethereum not only simplifies access and transparency for investors, but also opens the door to greater efficiency in the management of these funds.
This UBS launch could be a catalyst for more institutions to explore opportunities in tokenization, boosting the market and diversifying investment options in digital assets.
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