UBS pilots tokenised money market transfers on public blockchains
In the future all assets could be tokenised representing up to $64 Trillion of new business opportunity.
Key takeaways
- The UBS Tokenize platform was used in Hong Kong for the recent Bank of China Investment (BOCI) digital structured notes for CNH 200 million ($28m).
- Late last year, UBS Wealth Management issued $50 million in blockchain debt securities.
- Closer to home, last year UBS issued its own CHF 375 million ($411m) bond via the SIX Digital Exchange (SDX), a bond listed on both SDX and SIX, even though the bond is natively digital.
Cite or link to this article
Griffin, M. (2023) 'UBS pilots tokenised money market transfers on public blockchains', 311 Institute, 9 September. Available at: https://www.311institute.com/ubs-pilots-tokenised-money-market-transfers-on-public-blockchains/ (Accessed: 1 October 2026).
UBS Asset Management issued a pilot tokenized money market fund on the Ethereum public blockchain. It is one of the controlled pilots that are part of the Monetary Authority of Singapore (MAS) Project Guardian.
“This is a key milestone in understanding the tokenization of funds, building on UBS’s expertise in tokenizing bonds and structured products,” Thomas Kaegi, Head of UBS Asset Management, Singapore & Southeast Asia. “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.”
A key advantage of tokenizing funds is greater liquidity through an expanded reach. That’s where public blockchain can help. If it’s possible to reduce fund distribution costs through technology, this translates to smaller denominations for investments – so-called fractionalization – which expands the pool of investors. High net worth individuals might invest in funds previously only accessible to institutions.
During the first pilot transactions, UBS Asset Management executed fund subscriptions and redemption of the tokenized fund represented as a blockchain smart contract. It plans to work with more partners and explore other investment strategies in further live pilots. UBS used its own UBS Tokenize platform.
The fund is structured as a Variable Capital Company, a new Singapore corporate structure targeted at the asset management industry. PwC recently compared the VCC structure to others used by major asset management centers around the world.
The UBS Tokenize platform was used in Hong Kong for the recent Bank of China Investment (BOCI) digital structured notes for CNH 200 million ($28m). It also issued the tokenized notes on Ethereum. Late last year, UBS Wealth Management issued $50 million in blockchain debt securities. Investors included high net worth individuals in Hong Kong and Singapore via a private placement. In that case, it used a permissioned version of Ethereum.
Closer to home, last year UBS issued its own CHF 375 million ($411m) bond via the SIX Digital Exchange (SDX), a bond listed on both SDX and SIX, even though the bond is natively digital. This was possible because SDX linked its central security depositary (CSD) to the main SIX SIS CSD. The UBS bond is also possibly the largest digital bond issued so far.
Talking about blockchain earlier this year, UBS Chair Colm Kelleher recently said, “The technology’s unstoppable. Blockchain technology will reduce huge operational friction, reduce costs and, harnessed properly, will be a very good value additive to the chain.”
FAQ
Why does this matter?
In the future all assets could be tokenised representing up to $64 Trillion of new business opportunity.
About the author
Matthew Griffin Founder, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 15-time best selling author of the "Codex of the Future" series, Matthew is the Founder and Futurist in Chief of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity program, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
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Sources and further reading
- UBS Asset Management ubs.com
- Funds ledgerinsights.com
- compared the VCC structure pwc.com
Source: first published by the 311 Institute on 9 September 2023. Cite as: Griffin, M. (2023). UBS pilots tokenised money market transfers on public blockchains. 311 Institute. https://www.311institute.com/ubs-pilots-tokenised-money-market-transfers-on-public-blockchains/
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