USB, Switzerland’s largest bank, has launched a maiden tokenized investment fund on the Ethereum network, its first tokenized product on the network.
The banking giant, which manages assets worth $5.7 trillion, achieved a notable milestone after
launching
the asset. Named the USB USD Money Market Investment Fund Token (uMINT), the investment tool bridges the gap between traditional finance and digital technology.
uMINT holders would have exclusive access to USB’s institutional-level cash management solutions. The
Ethereum-based
digital token allows users to invest in the Switzerland-based bank’s money market instruments, which are characterized by a conservative, risk-averse framework.
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USB Forays into Asset Tokenization
The leading bank’s recent launch is part of its global distributed ledger technology strategy. USB’s asset management arm aims to leverage public and private blockchains with smart contract capabilities to enhance fund issuance and distribution.
Switzerland’s largest bank has been exploring blockchain technology as early as 2023 through its in-house provider, USB Tokenize. This facilitated USB Asset Management’s launch of its live pilot of a tokenized Variable Capital Company (VCC) fund on Ethereum the same year.
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Meanwhile, USB Asset Management has conducted other notable blockchain-based transactions. For instance, using its natively-issued digital bond, it executed the world’s first cross-border repurchase transaction on a public blockchain.
Asset Tokenization Surging in TradFi
Traction towards real-world asset (RWA) tokenization has recently surged as traditional financial institutions leverage the technology to enhance their market presence. Leading asset managers like BlackRock and Franklin Templeton have indicated interest in the emerging trend.
For context, Franklin Templeton recently expanded trading its OnChain US Government Money Market Funds, FOBXX, to Coinbase’s layer 2 scaling solution, Base. The fund now trades on six blockchains, including
Avalanche
and Arbitrum. In March, BlackRock launched BUIDL, a tokenized fund on Ethereum, in March.
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Notably, chains like XRPL and Cardano have also seen their fair share of asset tokenization. For instance, the XRP Ledger
became
the choice network in a $1 billion tokenization collaboration between Zoniqx and Aurum Equity Partners late last month.
Cardano’s EMURGO also brought tokenized gold to the blockchain through a
partnership
with Kinka Gold to launch XNK. The Cardano network also
attracted
German-based tokenization platform Finest to launch tokenized gold on the blockchain.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.