UBS Asset Management Launches First Live Tokenised VCC Fund Pilot Under MAS’s Project Guardian

UBS Asset Management, led by Thomas Kaegi, has initiated its first live tokenized Variable Capital Company (VCC) fund pilot as part of the Monetary Authority of Singapore’s Project Guardian. This project utilizes UBS’s in-house platform, UBS Tokenise, which functions on blockchain technology. This initiative marks a significant advancement in UBS’s exploration of both public and private blockchain technologies aimed at enhancing the efficiency of fund issuance and distribution.

The launch follows UBS’s earlier issuance of a groundbreaking digital bond worth 375 million Swiss francs, featuring a 2.33% coupon. This bond was structured to reflect the characteristics of a traditional UBS senior unsecured note, highlighting the firm’s commitment to tokenization and digital asset initiatives as a crucial step in its blockchain endeavors.

Recent developments reveal that Project Guardian represents UBS Asset Management’s significant entry into Ethereum blockchain-based tokenized money market funds. The goal of this project is to enhance understanding of fund tokenization while leveraging UBS’s expertise in the tokenization of bonds and structured products.

UBS, headquartered in Zurich, Switzerland, and recognized as a leading global wealth manager, made headlines in 2022 when it launched the first publicly traded digital bond. This initiative was part of its strategy to improve market liquidity, increase accessibility, and provide customized financial advice and a wide range of products.

Additionally, in June 2023, UBS utilized its proprietary service, UBS Tokenise, to assist the Bank of China International (BOCI) in Hong Kong with issuing digital structured notes worth CNH 200 million. This highlighted the firm’s ongoing commitment to utilizing public and private blockchain technologies in its operations.

Currently, UBS manages a portfolio valued at $3 trillion through its live pilot program and is publicly listed on major exchanges.

This article was generated with the support of AI and reviewed by an editor.