Swiss bank UBS has launched a live pilot of a tokenised version of its variable capital company (VCC) fund as part of Project Guardian, an initiative led by Singapore’s central bank, reports Cointelegraph.
In a press release, UBS Asset Management announced that the fund is part of a broader VCC umbrella designed to bring different types of real-world assets (RWA) to the blockchain. According to Thomas Kaegi, the head of UBS Asset Management for Singapore and Southeast Asia, the project is a milestone in understanding funds tokenisation.
“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,” said Kaegi.
UBS Asset Management launched the controlled pilot of the tokenised money market fund through the company’s in-house tokenisation service called UBS Tokenize. Using a smart contract on Ethereum, the firm carried out various activities, including redemptions and fund subscriptions.
The pilot is also a part of the company’s global distributed ledger technology strategy, which focuses on using private and public blockchains to enhance fund distribution and issuance.