UBS Launches Tokenized Asset Fund Pilot under Singapore's Project Guardian
Summary:
Swiss bank UBS has begun a pilot of a tokenized Variable Capital Company (VCC) fund as part of Project Guardian, led by Singapore's central bank. UBS Asset Management stated the fund is part of a larger initiative to bring different kinds of real-world assets to the blockchain. The pilot, operating via the firm's in-house tokenization service 'UBS Tokenize', involves activities such as redemptions and fund subscriptions executed through an Ethereum smart contract. This project aligns with UBS's broader strategy of using distributed ledger technology to enhance fund distribution and issuance.
UBS, a prominent Swiss bank, has inaugurated an experimental rollout of a tokenized rendition of its Variable Capital Company (VCC) fund under the purview of Project Guardian, a venture spearheaded by Singapore's central bank. In an official statement, UBS Asset Management revealed that the fund is encapsulated within a broader VCC framework intended to integrate a variety of tangible assets onto the blockchain. Thomas Kaegi, the regional director of UBS Asset Management for Singapore and Southeast Asia, recognized the venture as a landmark in deciphering the nuances of tokenizing funds. He stated that the venture aims to collaborate with established financial bodies and emerging fintech enterprises to navigate ways to amplify market liquidity and accessibility for customers. UBS Asset Management orchestrated the supervised testing of the tokenized monetary market fund via the firm's exclusive tokenization provision known as UBS Tokenize. Through the utilization of an Ethereum-based smart contract, the corporation accomplished diverse activities like redemptions and fund subscriptions. This testing phase forms an integral part of the firm's comprehensive approach towards distributed ledger technology, emphasizing the incorporation of public and private blockchains for refining fund distributions and issuances. In line with previous anticipations about real-world assets' tokenization, this recent progress holds promise. At the World Token Summit 2023, UAE government advisor Ellis Wang drew attention to the benefits offered by tokenized tangible assets such as improved transparency and security, characteristics intrinsic to blockchains in his conversation with Cointelegraph. He indicated that such tokenization could gain traction considering the value it offers across various sectors. Earlier in the year, protocols dedicated to tangible assets emerged as trending subjects after outshining other decentralized finance (DeFi) subsectors. On the 9th of June, the projected token profits of a tangible asset tokenization platform escalated by almost 32% since the beginning of the year.
Published At
10/2/2023 12:55:34 PM
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