UBS Asset Management, under the leadership of Thomas Kaegi, has launched its first live tokenised VCC fund pilot on Thursday, as part of the Monetary Authority of Singapore's (MAS) Project Guardian. The project leverages UBS's in-house service, UBS Tokenise, which operates on the Ethereum blockchain. This move is a significant step in UBS's exploration of public and private blockchain technologies for efficient fund issuance and distribution.
The launch follows UBS's introduction of a pioneering 375 million Swiss franc-denominated digital bond with a 2.33% coupon, designed to mirror a traditional UBS senior unsecured note's structure. This demonstration of UBS's commitment to tokenisation services and digital asset ventures was a key milestone in their blockchain journey.
On Wednesday, it was noted that Project Guardian represents a significant foray for UBS Asset Management into Ethereum blockchain-based tokenized money market funds. The project aims to understand fund tokenization better and leverage UBS's expertise in tokenizing bonds and structured products.
UBS, the world's leading global wealth manager based in Zurich, Switzerland, with operations globally, had previously launched the first publicly traded digital bond in 2022. This initiative was part of its commitment to enhancing market liquidity, broadening access, and offering tailored advice and diverse financial products.
Furthermore, the company had used its proprietary service, UBS Tokenise, earlier in June 2023 to aid the Bank of China International (BOCI) in Hong Kong issue CNH 200 million worth of digital structured notes. This event echoed the firm's dedication towards harnessing both public and private blockchain technologies in their operations.
UBS manages a $3 trillion portfolio via its live pilot program and is listed on both the SIX Swiss Exchange and NYSE.
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