UBS Asset Management has expanded its digital asset capabilities with the launch of the “UBS USD Money Market Investment Fund Token” (uMINT), a tokenised money market product built on Ethereum’s distributed ledger. Announced from Singapore on November 1, the fund reflects the global trend towards blockchain integration in asset management, leveraging technology to enhance transparency, efficiency, and investor access.
Thomas Kaegi, co-head of UBS Asset Management for Asia-Pacific, highlighted growing demand for tokenised financial assets as a key driver behind this innovation. “Leveraging our global expertise and collaborative efforts with peers and regulators allows us to offer clients an innovative solution,” Kaegi said in a statement. The new token provides investors with exposure to UBS’s institutional-grade cash management solutions, based on high-quality, conservatively managed money market instruments.
The uMINT launch aligns with UBS’s broader blockchain strategy, which includes using public and private networks to enhance fund issuance and distribution. UBS’s blockchain initiatives have included the issuance of 200 million renminbi in fully digital structured notes for a third-party issuer in June 2023 and a cross-border repurchase transaction involving a natively issued digital bond settled on a public blockchain in November 2023.
Streamlining operations
The asset management sector is adopting blockchain technology for its potential to streamline operations and increase transparency. Luxembourg, Europe’s leading domicile for investment funds, has made significant strides in integrating blockchain into financial services. The country’s supervisor, the Commission de Surveillance du Secteur Financier (CSSF), recently approved its first fully tokenised Ucits fund, developed by Franklin Templeton, which uses a blockchain-enabled transfer agency platform.
Luxembourg’s regulatory efforts include the proposed Blockchain Bill IV, which aims to embed distributed ledger technology (DLT) into capital market infrastructure. The bill introduces roles such as the “control agent” to ensure compliance and transparency, simplifying fund administration.
Other developments in the sector include Apex Group’s DLT registry for the Hamilton Lane Global Private Assets fund, which has demonstrated the use of blockchain for creating digital share classes and optimising investor onboarding, AML/KYC processes, and fund administration.