UBS Asset Management has launched its first live pilot of a tokenised Variable Capital Company (VCC) fund, which is part of a wider VCC umbrella designed to bring various real world assets on the blockchain as part of the Monetary Authority of Singapore-led initiative Project Guardian.
The controlled pilot of the tokenised money market fund utilises the firm’s in-house tokenisation service UBS Tokenize. Represented as a smart contract on the Ethereum public blockchain, the pilot enables UBS Asset Management to carry out various activities including fund subscriptions and redemptions.
The pilot is part of UBS Asset Management’s global distributed ledger technology strategy, focused on leveraging public and private blockchains networks for enhanced fund issuance and distribution.
Following the successful launch, UBS Asset Management will be looking to execute further live pilot use cases under Project Guardian. “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,” says Thomas Kaegi, UBS Asset Management head of Singapore and Southeast Asia.
