UBS Asset Management (UBSAM) has started its first live pilot of a tokenised money market fund.
The move is part of Project Guardian, an initiative involving the Monetary Authority of Singapore and firms from Singapore’s asset management market.
The fund will adopt the variable capital company (VCC) structure and is designed to bring more real assets on-chain.
UBSAM will use its own in-house tokenisation service and smart contracts on the Ethereum public blockchain. This will enable the asset manager to process subscriptions and redemptions via the blockchain.
Thimas Kaegi, head of UBSAM, Singapore and Southeast Asia, described the launch of the pilot as a “milestone in understanding the tokenisation of funds”.
“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,” said Kaegi.
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