UBS Asset Management, one of the world's largest fund houses, has launched its first "live pilot" of a tokenized money market fund on the Ethereum blockchain.

The pilot allows UBS Asset Management to test various fund activities on-chain, including subscriptions and redemptions, the firm said Monday. UBS has utilized its in-house tokenization service, UBS Tokenize, to launch the pilot of the fund.

"This is a key milestone in understanding the tokenization of funds, building on UBS's expertise in tokenizing bonds and structured products," Thomas Kaegi, head of UBS Asset Management in Singapore and Southeast Asia, said in a statement. "Through this exploratory initiative, we will work with traditional financial institutions and fintech providers to help understand how to improve market …