UBS Asset Administration has launched its first reside pilot of a tokenized Variable Capital Firm (VCC) fund.

The fund is a part of a wider VCC umbrella designed to carry varied “actual world property” on-chain as a part of Venture Guardian, a collaborative trade initiative led by the Financial Authority of Singapore (MAS).

Thomas Kaegi

Thomas Kaegi, Head UBS Asset Administration, Singapore & Southeast Asia, stated:

“This can be a key milestone in understanding the tokenization of funds, constructing on UBS’s experience in tokenizing bonds and structured merchandise. By this exploratory initiative, we’ll work with conventional monetary establishments and fintech suppliers to assist perceive methods to enhance market liquidity and market entry for purchasers.”

Using the agency’s in-house tokenization service, UBS Tokenize, UBS Asset Administration launched this managed pilot of a tokenized cash market fund. Represented as a wise contract on the Ethereum public blockchain, the pilot permits UBS Asset Administration to hold out varied actions together with fund subscriptions and redemptions.

This pilot is a part of UBS Asset Administration’s international distributed ledger know-how technique, targeted on leveraging private and non-private blockchains networks for enhanced fund issuance and distribution. It additionally kinds a part of the broader growth of UBS’s tokenization companies by way of UBS Tokenize. In November 2022, UBS launched the world’s first digital bond that’s publicly traded. In December 2022, UBS issued a USD 50 million tokenized fastened charge observe, and in June 2023 originated CNH 200 million of totally digital structured notes for a third social gathering issuer.

Following the profitable launch of the primary pilot transactions, UBS Asset Administration will likely be seeking to execute additional reside pilot use circumstances beneath Venture Guardian – working with a wider set of companions and discover varied funding methods.