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Ethereum Updates: UBS Launches Tokenized Fund, Highlighting Blockchain’s Growing Role in Institutional Finance

Ethereum Updates: UBS Launches Tokenized Fund, Highlighting Blockchain’s Growing Role in Institutional Finance

Bitget-RWA2025/11/11 19:12
By:Bitget-RWA

- UBS executed first tokenized fund transaction using Chainlink's DTA standard on Ethereum , automating fund operations via smart contracts. - The uMINT fund with DigiFT's real-time processing demonstrated blockchain's potential to streamline institutional asset management and reduce reconciliation costs. - Institutional adoption accelerates as BNY, Goldman Sachs , and WisdomTree launch tokenized fund projects, with Ethereum's tokenized assets growing 2,000% YoY. - XRP and cross-border crypto projects gain

UBS Achieves Milestone Tokenized Fund Transaction Leveraging Chainlink's DTA Standard

International banking leader

carried out its inaugural live tokenized fund transaction on November 4, 2025, utilizing Chainlink’s Digital Transfer Agent (DTA) standard. This event marks a significant advancement in the adoption of blockchain within institutional finance, according to a . The transaction featured the USD Money Market Investment Fund Token (uMINT), which operates on . DigiFT served as the on-chain distributor, enabling real-time processing of both subscription and redemption requests, as detailed in a . This process automated essential fund tasks—including order intake, trade execution, settlement, and data alignment—across both blockchain and traditional systems, highlighting blockchain’s ability to optimize institutional asset management, as referenced in the .

This achievement is part of UBS’s broader Tokenize strategy, which seeks to apply blockchain to bonds, funds, and structured financial products. Mike Dargan, UBS’s group chief operations and technology officer, described the transaction as a “major milestone” for boosting operational effectiveness and unlocking “new opportunities for product composability” through smart contract technology, as mentioned in the

. co-founder Sergey Nazarov noted that the DTA standard enables “secure, compliant, and scalable end-to-end processes for tokenized assets,” while DigiFT CEO Henry Zhang pointed to the transaction’s real-time transparency and reconciliation features, as highlighted in the .

Ethereum Updates: UBS Launches Tokenized Fund, Highlighting Blockchain’s Growing Role in Institutional Finance image 0
This progress reflects a broader movement among institutions toward adopting tokenized assets. Earlier in 2025, BNY and Goldman Sachs revealed a blockchain initiative to tokenize money market fund (MMF) shares, aiming to improve both transferability and utility, as reported in the . Likewise, WisdomTree recently launched a Chainlink-powered net asset value (NAV) feed for its CRDT tokenized private credit fund on Ethereum, delivering cryptographically verified pricing through decentralized networks, according to a . These developments signal a shift toward instant settlement, lower reconciliation expenses, and programmable financial instruments, with the tokenization sector expected to reach a multi-trillion-dollar valuation within the next decade, as stated in the .

Ethereum’s influence in this transformation is growing, fueled by rising stablecoin transactions and increased adoption of tokenized funds. PayPal’s PYUSD stablecoin alone saw $18.6 billion in transaction volume in 2025, while tokenized funds on Ethereum expanded by 2,000% year-over-year, as outlined in a

. Despite this, Ethereum’s native asset (ETH) continues to trade below $3,500, with neutral derivatives data indicating cautious market sentiment even as on-chain activity remains strong, as noted in the .

At the same time, tokenized assets are shaping narratives around cryptocurrency prices.

, the digital currency of Ripple, has seen renewed optimism, with some analysts forecasting a potential surge above $18 as real-world payments and tokenized funds gain traction on the XRP Ledger (XRPL), according to an . Projects such as Remittix, which specializes in cross-border crypto payments, further illustrate the sector’s momentum and are often compared to Ripple’s institutional-grade solutions, as mentioned in the .

The successful live transaction by UBS highlights a broader shift from traditional financial systems to programmable infrastructure, with major players like BlackRock, JPMorgan, and Fidelity expanding their tokenized fund portfolios, as referenced in the

. As regulations evolve and cross-chain connectivity improves, tokenization is set to transform liquidity, transparency, and efficiency across global financial markets.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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