November 5, 2024
By Our Correspondent
UBS Asset Management has introduced its inaugural tokenized investment fund, named “uMINT.” This fund is constructed on the Ethereum blockchain and is designed as a money market fund that prioritizes conservative, risk-managed investments in high-quality money market instruments.
The objective of uMINT is to utilize blockchain technology to enhance investment processes, thereby providing a new standard of transparency and efficiency. UBS Group AG, with its headquarters in Zurich and Basel, Switzerland, stands as a prominent global financial services institution with a storied history and a wide range of operations. It is acknowledged as the largest truly global wealth manager, managing approximately $4.3 trillion in assets.
In March 2023, UBS completed the acquisition of Credit Suisse in a state-supported transaction valued at $3.2 billion. As a result of this acquisition, UBS’s asset management division expanded from about $1.1 trillion in 2022 to approximately $1.6 trillion. In the third quarter of 2024, UBS reported a net profit of $1.4 billion.
In collaboration with Singapore-based fintech company DigiFT, UBS has launched the fund in a format that enables investors to subscribe using their preferred digital custody wallets, while also providing real-time redemption options.
DigiFT’s platform offers users on-chain operational visibility and automated compliance, with the aim of making investment management more accessible and efficient. Henry Zhang, CEO of DigiFT, described the partnership as a significant achievement for Web3 and decentralized finance.
“This collaboration connects traditional finance with digital and decentralized technologies, offering next-generation investment solutions on an open network,” stated Zhang. DigiFT, which is recognized as a Regulated Market Operator (RMO) and holds a Capital Markets Services (CMS) license from the Monetary Authority of Singapore, will oversee the infrastructure and monitor the on-chain distribution of the fund.
By leveraging its blockchain capabilities, DigiFT’s platform ensures that all transactions are recorded on an immutable ledger, thereby providing investors with improved transparency, operational efficiency, and real-time audit capabilities. UBS seeks to establish a pathway for both institutional and individual investors to discover the advantages of decentralized finance through uMINT.
