UBS’ Tokenized Money Market Fund Goes Live on Ethereum Blockchain. Launching its first live test of a tokenized Variable Capital Company (VCC) fund on the Ethereum blockchain in Singapore, according to the leading Swiss asset management bank UBS.
However, According to the company’s press statement. The money market fund is a component of a larger VCC framework created to incorporate diverse real-world assets into the blockchain.
Project Guardian. It is a group industry effort to tokenize real-world assets. However, it Includes the UBS pilot. The Monetary Authority of Singapore (MAS) controls the city-state’s central bank and financial regulator.
To strengthen Singapore’s status as a centre for fund management activities. The VCC fund was first created in January 2020. It serves as a legal body for investment funds in Singapore.
According to UBS Asset Management for Singapore and Southeast Asia. The live VCC’s introduction is a crucial turning point in the study of fund tokenization.
To improve market accessibility for investors. He also reaffirmed the firm’s commitment to collaboration with conventional financial institutions and fintech companies.
These partnerships will help researchers learn how to increase market liquidity for their clients.
According to the public statement. The asset management bank’s internal tokenization service, “UBS Tokenize”, was used to launch the controlled pilot of the tokenized money market fund.
The live pilot allows the company to conduct various activities, including subscriptions and redemptions, through intelligent contracts on the Ethereum public blockchain.
UBS’s Entry Into the Tokenization Space May Propel More Growth
I am following the successful implementation of UBS’s initial pilot transactions. The asset management company plans to broaden its Project Guardian products and enter into alliances incorporating different investing techniques.
Through its tokenization services. The company has made significant progress toward investigating potential use cases for decentralized finance (DeFi).
The world’s first digital bond to be traded on public markets was introduced by UBS on November 3. A $50 million tokenized fixed-rate note in December followed this closely.
However, Using the UBS Tokenize platform, the Bank of China Investment (BOCI) issued CNH 200 million ($27.3M) worth of digital structured notes on June 9 in Hong Kong.
However, On the Ethereum network. These notes were developed and distributed as tokens.
DESPITE BEING RELATIVELY NEW. The UBS tokenized service and VCC fund can potentially change the landscape of digital assets and the more extensive financial system in the coming years.
Singapore provides $112M to help support Web3 and other finance technologies.
The new development comes true for earlier forecasts regarding the tokenization of RWAs: Ellis Wang, a government adviser to the United Arab Emirates. However, Cointelegraph stated during a panel discussion at the World Token Summit 2023 that tokenizing RWAs offers several benefits, including transparency and security, attributes built into blockchains. The executive asserts that the tokenization of RWAs may become popular because it provides considerable prospects for numerous industries.
However, RWA-focused protocols emerged earlier this year as they outperformed other decentralized finance subsectors. On June 9, Centrifuge, a platform for RWA tokenization, saw a 32% increase in year-to-date token gains.