UBS: after BUILD, a new tokenized fund on Ethereum

By Davide Grammatica

Hot on the heels of BlackRock's BUILD, investment bank UBS launches its first tokenized investment fund

UBS launches new tokenized fund

Following the example of BlackRock and Franklin Templeton, financial giant UBS has also decided to explore the world of tokenization with the launch of a new “tokenized” asset fund built on Ethereum.

It will be called uMINT (or, more accurately, “UBS USD Money Market Investment Fund Token”), and it will allow the world’s largest private bank to enter this field as a major player.

It is not yet clear at this time what financial instruments should make up the fund, but it is likely to be government bonds and the like. For now, UBS has limited itself to saying that investors will have access to “high-quality money market instruments based on a conservative, risk-managed framework.”

An increasingly institutional blockchain

“We have seen a growing investor appetite with respect to ‘tokenized’ financial assets, regardless of their classification,” said, on the matter, Thomas Kaegi, co-head of Asia division at UBS. It seems clear, in this sense, that institutions have understood the scope of the RWA world.

The dynamic offers a very important space for development for Ethereum, which, chosen by UBS, solidifies an already obvious lead in the tokenization sector. According to data collected by RWA.xyz, Ethereum would count over $3 billion in tokenized assets on the network, totaling $3.9 billion. Among these, U.S. government bonds cover the largest slice.

In 30 days alone, this value has grown by 4 percent, and BlackRock ‘s BUIDL leads the category with the highest capitalization, or about $523 million. Behind him is Franklin Templeton ‘s FOBXX with $408 million.