Asset management of Swiss bank giant UBS launched an Ethereum-based tokenized fund.
In May of 2016, the Monetary Authority of Singapore launched Project Guardian, a pilot initiative in Singapore. The fund tokenized Variable capital Company (VCC). UBS has said that it plans to implement more Project Guardian pilot programs.
A Monday announcement revealed that the fund, which is structured as an Ethereum smart contract, was launched with UBS Tokenized. This service offers a proprietary way of tokenizing assets.
UBS Asset Management is able to carry out various functions such as fund subscriptions, redemptions and processing.
“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products,” Thomas Kaegi said Thomas Kaegi was Singapore and Southeast Asia director at UBS asset Management.
“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,” He also added.
In a report published by the Bank of International Settlements recently, the Bank of International Settlements stated that the tokenization of financial assets has the ability to improve the efficiency and the transparency of the markets.
Bank of America research indicates that by 2030 the value of tokenized asset could be as high as $16.1 trillion or 10% of world GDP.
Goldman Sachs JPMorgan Hamilton Lane Siemens and other companies have already announced their participation in tokenization projects.
UBS made its first foray into the world of Blockchain in November 2017 when it issued a 370 million dollar bond via SIX Digital Exchange’s blockchain private platform.
This bond, which was intended for tokenized offerings regulated by the Swiss Six exchange was made available.
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