UBS Asset Management Launches New Investment Fund uMINT That Uses Ethereum’s DLT to Target Institutional Investors

According to the press release, this fund is a money market investment that uses Ethereum's distributed ledger technology (DLT) to offer a modern way

UBS Asset Management has officially announced the launch of a new investment fund known as the UBS USD Money Market Investment Fund Token, which is notably being referred to as uMINT.

This fund is essentially a money market investment that utilizes Ethereum's distributed ledger technology (DLT) to provide a contemporary approach for institutional investors in managing their funds, as stated in a press release.

Highlighting the increasing interest among investors in digital financial products, Thomas Kaegi, Co-Head of UBS Asset Management for Asia-Pacific, explained the rationale behind the fund's creation.

"We are seeing growing demand for tokenised financial assets across asset classes. By leveraging UBS’s global capabilities and partnering with our peers and regulators, we are now able to offer this innovative solution to our clients,” Kaegi stated.

Through uMINT, investors can tap into UBS's cash management services, which are centered around secure money market instruments. These instruments are designed to cater to the conservative and low-risk needs of institutional investors seeking to preserve their funds.

Furthermore, UBS plans to leverage both public and private blockchain networks to enhance its fund issuance and distribution capabilities. The uMINT fund is part of a broader initiative to expand UBS's digital services through a program called UBS Tokenize.

Earlier in 2023, specifically in June, UBS had issued CNH 200 million in fully digital structured notes for a separate entity. They also achieved a significant milestone in November 2023 by completing the world's first cross-border repurchase transaction involving a digital bond, which was entirely executed on a public blockchain.

In addition, UBS is engaged in a project with the Monetary Authority of Singapore known as Project Guardian. As part of this initiative, they launched a pilot program for tokenized Variable Capital Company (VCC) funds in October 2023.

The uMINT fund will be made available through authorized distribution partners, enabling investors to easily access this new investment avenue. Following its acquisition of Credit Suisse early last year, the firm now boasts around $5.7 trillion in assets under management and spans over 50 countries.