As part of Project Guardian, Switzerland’s biggest bank has launched a tokenized pilot project for its Variable Capital Company (VCC) fund.
UBS Asset Management, a Swiss financial holding company, has announced the launch of a pilot project to tokenize the VCC fund, which is part of Project Guardian, an initiative led by the Monetary Authority of Singapore (MAS) .
As part of the pilot project, the bank is using the in-house tokenization service UBS Tokenize to enable various asset activities, including fund subscriptions and redemptions, using smart contracts on the Ethereum blockchain.
According to Thomas Kaegi, Head at UBS Singapore and Southeast Asia, the initiative is designed to provide insight into tokenization of funds, particularly tokenization of bonds and structured products. He said the bank would continue to work with traditional financial institutions and FinTech service providers to improve market liquidity and market access for their clients.
Following the successful launch of the first pilot operations, UBS Asset Management plans to conduct additional pilot tests under Project Guardian, collaborating with a wider range of partners and exploring different investment strategies.Members of the Swiss Bankers Association consider deposit tokens to be a more efficient and safer alternative to stablecoins.
