Joining a list of banks exploring blockchain use cases, UBS Asset Management has launched a tokenized fund version as part of Project Guardian.
International banks have been exploring blockchain use cases in recent times. New blockchain products and services have become the norm for such banks, from JP Morgan to Citi. Running along the trend, UBS Asset Management has launched a tokenized fund.
In an official statement, UBS has affirmed exploring more pilot use cases. It would be possible in case the transactions of the current fund are successful.
UBS released the Variable Capital Company (VCC) fund’s tokenized live pilot version. VCC is a part of Project Guardian, which the Monetary Authority of Singapore initiated. The current tokenized fund is part of the overall VCC umbrella that aims to bring multiple assets on-chain.
“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products. Through this exploratory initiative, we will work with traditional financial institutions and fintech providers to help understand how to improve market liquidity and market access for clients,” said Thomas Kaegi of UBS.
UBS Asset Management used USB Tokenize, the in-house feature of the investment firm. USB Tokenize helped the fund’s pilot launch on the Ethereum blockchain as a smart contract. Various activities like redemptions and fund subscriptions would be possible through it.
The pilot is part of an overall strategy taken up by UBS Asset Management to explore blockchain use cases.