UBS Launches Tokenised VCC Fund on Ethereum Blockchain
Companies such as Goldman Sachs, JPMorgan, Hamilton Lane, and Siemens have also previously announced their involvement in asset tokenisation projects
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On 2 October, UBS Asset Management announced the launch of its first live pilot of a tokenised variable capital company (VCC) fund. The initiative is part of the Monetary Authority of Singapore’s (MAS) Project Guardian to bring real-world assets on the blockchain.
To carry out this controlled pilot, UBS will leverage its in-house tokenisation service, UBS Tokenise. Using a smart contract on the Ethereum public blockchain, the pilot will allow UBS Asset Management to perform various operations, including fund subscriptions and redemptions, seamlessly.
The pilot aligns perfectly with UBS Asset Management’s global distributed ledger technology strategy to leverage blockchain technology, both public and private, for efficient fund issuance and distribution. This initiative contributes to the broader expansion of UBS’s tokenisation services, marking a pivotal moment in their digital asset journey.
Thomas Kaegi, Head of UBS Asset Management, Singapore and Southeast Asia, expressed that the recent development is a significant step in understanding the tokenisation of funds. He added, “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.”
UBS has been at the forefront of developing innovative digital assets. In November 2022, it launched the world’s first publicly traded digital bond - a 375 million Swiss franc-denominated three-year bond with a 2.33% coupon, which has the same instrument structure, legal status, and rating as a traditional UBS senior unsecured note.
