UBS Launches New Tokenized Fund, Solidifying Ethereum's Lead in the Tokenization Sector

Following the example of BlackRock and Franklin Templeton, financial giant UBS has also decided to explore the world of tokenization with the launch of a new “tokenized” asset fund built on Ethereum.

Swiss banking giant UBS has launched a new tokenized fund, joining the likes of BlackRock and Franklin Templeton in exploring the world of tokenization.

The fund, to be called uMINT (UBS USD Money Market Investment Fund Token), will allow the world’s largest private bank to enter the field as a major player.

The financial instruments that will comprise the fund are not yet known, but they will likely be government bonds and the like. For now, UBS has stated that investors will gain access to “high-quality money market instruments based on a conservative, risk-managed framework.”

“We have seen a growing investor appetite with respect to ‘tokenized’ financial assets, regardless of their classification,” said Thomas Kaegi, co-head of Asia at UBS, on the matter. It seems clear, in this sense, that institutions have grasped the scope of the RWA world.

The dynamic offers a very important space for development for Ethereum, which, having been chosen by UBS, solidifies an already evident lead in the tokenization sector. According to data collected by RWA.xyz, Ethereum would count over $3 billion in tokenized assets on the network, for a total of $3.9 billion. Among these, U.S. government bonds cover the largest slice.

In 30 days alone, this value has grown by 4 percent, and BlackRock’s BUIDL leads the category with the highest capitalization, at around $523 million. Behind it is Franklin Templeton’s FOBXX, at $408 million.