Quick Breakdown
- Bybit now accepts UBS’s uMint tokenized fund as trading collateral.
- The move, enabled by DigiFT, enhances capital efficiency and transparency.
- UBS’s uMint, launched in 2024, represents an institutional-grade tokenized money market fund on Ethereum.
Bybit integrates UBS’s uMint fund for collateral trading
The growing intersection between traditional finance and the crypto world has taken a new step as Bybit, the world’s second-largest crypto exchange by trading volume, announced on October 13 the integration of the uMint tokenized fund, a product launched by global banking giant UBS.
The integration allows Bybit users to leverage the UBS tokenized money market investment fund as collateral for trading activities on the platform.
“Investors of the UBS tokenized money market investment fund will be able to use their holdings as collateral for trading in a secure and cost-efficient way,” said Ben Zhou, Co-Founder and CEO of Bybit. “This partnership is another important step in bridging Web2 finance and Web3 innovation.”
Enhancing capital efficiency for institutional investors
By enabling traders to hold an institutional-grade money market fund while simultaneously using it as trading collateral, the partnership significantly reduces capital expenditure for professional and institutional investors. This dual utility offers both liquidity and security, aligning with the growing demand for real-world asset (RWA) integration in crypto markets.
DigiFT partnership powers integration
The initiative is powered by DigiFT, an asset tokenization platform that distributes the uMint fund to investors. According to Henry Zhang, Founder and Group CEO of DigiFT, this collaboration highlights how regulated RWA infrastructure can improve both transparency and capital efficiency.
“Through this collaboration, DigiFT exemplifies how regulated RWA infrastructure can deliver both capital efficiency and transparency to the financial markets of the future,” Zhang said.
UBS’s foray into tokenized assets
UBS launched the USD Money Market Investment Fund Token (uMint) in November 2024 as its first tokenized investment fund. Built on the Ethereum blockchain, the uMint fund is a low-risk, institutional-grade product backed by short-term U.S. Treasury debt. It was designed specifically for accredited and professional investors, reflecting UBS’s move toward modernizing asset management through blockchain technology.
Meanwhile, Chainlink, UBS, and regulated RWA exchange DigiFT recently formed a strategic partnership to automate tokenized fund operations onchain, under the Hong Kong government’s Cyberport Blockchain & Digital Asset Pilot Subsidy Scheme.
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