UBS Asset Management introduced the first tokenized Investment Fund on Ethereum.
Named “UBS USD Money Market Investment Fund Token,” or ‘uMINT,’ the fund is built on Ethereum (ETHSingapore has authorized distributors for a variety of products. per UBS.
Tokenization is a process This technology converts assets like bonds or stocks into digital tokens which can then be managed via a Blockchain, the decentralized tech behind crypto currencies like Bitcoin.BTCEthereum.
The digital tokens are a fraction of an asset that allows investors to more easily buy, hold, and sell traditional financial products.
UBS hopes to capitalise on the increasing demand for tokenization using its global resources. The uMINT funds will provide institutional money market assets in a risk-controlled, conservative framework to investors who buy tokens.
TradFi tokenization
The major financial institutions have been exploring the tokenization concept more and more. Franklin Templeton announced earlier this week that it was exploring tokenization. added Coinbase Base is the 6th blockchain that supports its OnChain U.S. Government Money Market Fund. This allows trades to be made on the layer-2 networks.
Wellington Management also collaborated Ondo Finance is partnering with Ondo Finance for a liquidity boost to its tokenized U.S. Treasury Fund.
Through tokenization and the blockchain, this partnership will make traditional assets like Treasury Bonds more accessible.
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Source: crypto.news
