UBS taps Ethereum to pilot tokenized money market fund

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UBS Asset Management has launched its first 'live pilot' of a tokenized money market fund on the Ethereum blockchain.

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank ChaparroThe fund, part of Project Guardian, is the first of several ‘live’ pilots UBS plans to launch.Learn more about Access Protocol

UBS Asset Management, one of the world's largest fund houses, has launched its first"live pilot" of a tokenized money market fund on the Ethereum blockchain."This is a key milestone in understanding the tokenization of funds, building on UBS's expertise in tokenizing bonds and structured products," Thomas Kaegi, head of UBS Asset Management in Singapore and Southeast Asia, said in a statement.

Following the successful launch of the first pilot transactions, UBS Asset Management will be looking to execute further live-pilot use cases under Project Guardian — working with a broader set of partners and exploring various investment strategies — the firm said. Tokenization, which helps bring off-chain or real-world assets on-chain, has been gaining popularity. Tokenization allows tracking, trading, programmability and management of these assets,It has"the potential to significantly reshape the digital asset landscape, as well as the global financial system at large," the report added.

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