The global Swiss-based fund company, UBS Asset Management has launched its first Blockchain native tokenized Variable Capital Company (VCC) fund live pilot in Singapore. The fund launched on Ethereum, is part of a program (Project Guardian) by the Singapore Monetary Authority.
In a collaboration led by the Monetary Authority of Singapore, Project Guardian is a program designed to bring real-world assets in various categories on-chain. The program is a wider VCC umbrella housing the UBS-launched tokenized fund.
This is a milestone for UBS and a step forward towards improving its fund issuance. UBS Asset Management has a mapped-out strategy on distributed ledger technology aimed at enhancing fund issuance and distribution through public and private Blockchains.
UBS utilized its own tokenization service, UBS Tokenize, to launch the tokenized money market fund. This launch brings about an expansion to UBS’s tokenization services.
UBS Asset Management Head in Singapore Thomas Kaegi, acknowledged that the launch is a “key milestone.” He further said that the firm will “work with traditional financial institutions and Fintech providers to better understand how to improve market liquidity and market access for clients.”
Furthermore, the pilot will enable UBS Asset Management to carry out activities like fund subscriptions and redemptions.
UBS Asset Management is an investment bank that provides clients with large-scale and diversified asset management options. Before this announcement, the firm launched a publicly traded digital bond in November 2022, issued a USD 50 million tokenized fixed rate note in December, and in June 2023, UBS originated CNH 200 million digital structured notes for a 3rd party issuer.
According to UBS, per the successful launch of the first pilot transactions, it would explore more live pilot use cases under Project Guardian. Also, the next live pilot will be executed in collaboration with a wider set of partners and various investment strategies, UBS said.
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