UBS Launches First Investment Fund on Ethereum Blockchain

UBS Asset Management said it’s launching its first investment fund, a money market fund, that trades on the Ethereum blockchain.

The company is joining a growing group of asset managers including BlackRock and Franklin Templeton that offer investment funds on blockchain, with the aim of cutting costs and speeding settlement of trades by using the technology. Such funds, so far primarily attracting crypto companies and investors that want to earn yield from U.S. treasuries, collectively reached $2.36 billion in assets, according to data from rwa.xyz, an analytics platform.

The fund allows its token holders to access “high quality money market instruments,” the company said. The fund, targeting investors in Asia, will be available through partners.