UBS Asset Management has introduced its inaugural tokenized investment fund, the UBS USD Money Market Investment Fund Token, which utilizes Ethereum blockchain technology. This move reflects the growing interest from investors in tokenized financial assets.

The fund tokenization process employs blockchain-based digital tokens to represent ownership, similar to traditional methods used by transfer agents. UBS has previously tested a tokenized Variable Capital Company fund and is collaborating with the Monetary Authority of Singapore on the Project Guardian initiative. Thomas Kaegi, co-head of UBS Asset Management APAC, has acknowledged the rising demand for tokenized assets across various asset classes.

Alongside the launch of the fund, UBS has expanded its tokenization services through UBS Tokenize, successfully originating CNH200 million ($28.04 million) in fully digital structured notes earlier this year. Additionally, UBS recently completed what it claims to be the world's first cross-border repurchase transaction involving a natively-issued digital bond, executed and settled on a public blockchain.