UBS Builds Real World Assets on Ethereum
The list of financial giants entering Real World Asset trading is getting longer.
The list of financial giants entering Real World Asset trading is getting longer. The latest player: the Union Bank of Switzerland (UBS). They are setting up a fund via Ethereum called "USD Money Market Investment Fund Token" or simply "uMINT."
Thomas Kaegi, who oversees the Asia/Pacific region at UBS, said his firm "is seeing growing investor interest in tokenized financial assets." UBS is one of the largest private banks in Europe, with a balance sheet over $1.7 trillion and hundreds of thousands of employees worldwide.
This year the number of companies entering the RWA trading (Real World Assets) has grown rapidly. VISA has built its own platform, as has BlackRock. Almost all of these platforms run on Ethereum. The current total value of all major platforms is about $13 billion.
Real World Assets refer to the tokenization of real assets. These can be stocks, securities, but also real estate or art. The biggest advantage is democratization of assets: they can be split into smaller parts that can be bought and stored. Capital market transactions can be executed faster, 24/7. Automation of certain processes also saves costs. A blockchain provides greater transparency.
"This move puts Ethereum directly at the heart of the traditional financial world," says popular crypto journalist Marion Nawfal on X. "If banks are willing to participate, it's only a matter of time before tokenized assets go mainstream." Many experts expect Real World Assets to become the next $10 trillion market.
