UBS Asset Management Launches Blockchain-Backed uMINT Fund for Institutional Investors
UBS Asset Management has introduced an innovative investment option, the UBS USD Money Market Investment Fund Token, also known as uMINT.
This new fund leverages Ethereum’s distributed ledger technology (DLT) to bring a modern, tokenized approach to institutional fund management.
uMINT is a money market fund aimed at institutional investors seeking a secure and conservative investment option. By using blockchain technology, UBS aims to offer a more streamlined and accessible cash management solution.
Thomas Kaegi, Co-Head of UBS Asset Management for Asia-Pacific, noted that the development of uMINT is part of UBS’s response to the rising demand for digital financial assets across various asset classes.
“We are seeing growing demand for tokenized financial assets across asset classes. By leveraging UBS’s global capabilities and partnering with our peers and regulators, we are now able to offer this innovative solution to our clients,” Kaegi said.
Designed with a focus on safety and risk management, the fund uses money market instruments known for their stability. UBS’s use of both public and private blockchain networks is set to improve the process of fund issuance and distribution, ensuring efficiency and enhanced security.
The launch of uMINT aligns with UBS’s broader digital initiative, UBS Tokenize, which explores opportunities to expand the firm’s digital service offerings. Earlier in 2023, UBS issued fully digital structured notes worth CNH 200 million for a partner firm and marked a milestone in November by completing the world’s first cross-border repurchase transaction via a digital bond on a public blockchain.
UBS is also collaborating with the Monetary Authority of Singapore through Project Guardian, an initiative exploring tokenized funds. In fact, in October 2023, UBS began a pilot for tokenized Variable Capital Company (VCC) funds under this project, demonstrating its commitment to advancing digital asset solutions in partnership with regulators.
The uMINT fund will be available through approved distribution channels, making it easier for institutional investors to access.
With this launch, UBS strengthens its position as a leader in the tokenized asset space, a market that is seeing considerable growth as traditional finance institutions embrace blockchain technology.
Following the acquisition of Credit Suisse, UBS now manages approximately $5.7 trillion in assets and operates in over 50 countries worldwide, highlighting its vast global reach and influence in the financial industry.
