#UBS
3 articles tagged #UBS — curated RWA tokenization coverage.
8.0
Infrastructure
Ledger Insights·Jun 23
UBS demos permissionless blockchain compliance at infrastructure level
UBS and blockchain firm Nethermind have successfully completed two proofs of concept on the Ethereum Sepolia test network to integrate compliance controls directly into the block production pipeline. This architectural shift moves beyond traditional smart contract-based allow lists, which currently serve as the primary method for institutional compliance on permissionless chains. The initiative addresses critical regulatory concerns regarding governance, Maximal Extractable Value (MEV), and counterparty anonymity that prevent banks from fully adopting public blockchains. By embedding compliance at the infrastructure level, the project aims to satisfy the Basel Committee on Banking Supervision, which currently imposes punitive capital requirements on tokenized securities held on permissionless networks. This development is significant because it seeks to align public blockchain operations with stringent banking regulations, potentially unlocking institutional participation. The work builds upon a previous whitepaper collaboration between Nethermind and Deutsche Bank, highlighting a coordinated industry effort to solve systemic infrastructure risks. Successfully bridging this gap could fundamentally alter how financial institutions interact with decentralized networks for asset tokenization.
8.0
U.S. Treasuries
Wall Street’s UBS uMINT yield-bearing collateral has reached Bybit – but there’s a catch
Calais Digital Assets has successfully integrated UBS's uMINT tokenized money-market fund as live collateral for trading operations on the Bybit exchange. This deployment, which went live on June 18, utilizes a three-party infrastructure involving DigiFT for distribution and ByCustody for asset holding. By allowing the uMINT position to remain in custody while being recognized as exchange margin, Calais achieves capital efficiency by earning money-market yield on assets that would otherwise sit idle. This development marks a significant shift in the RWA market from simple token issuance to the integration of assets into active, institutional-grade trading workflows. While the current scale of uMINT remains modest with approximately $18.7 million in total asset value as of June 21, the workflow demonstrates a functional path for tokenized funds to serve as productive balance-sheet tools. The success of this model depends on the ability of market participants to standardize operational controls, including valuation, haircut policies, and liquidation procedures during periods of market stress. Ultimately, this implementation serves as a critical proof point for the utility of tokenized real-world assets within complex, multi-party financial stacks.
8.0
Active Strategies
Calais Becomes 1st Quantitative Hedge Fund to Deploy UBS uMINT as OES Collateral via Bybit, ByCustody & DigiFT
Calais Digital Assets has become the first institutional client to utilize UBS uMINT as off-exchange settlement (OES) collateral for active trading on the Bybit exchange. This deployment, facilitated by ByCustody and DigiFT, allows the Singapore-based quantitative fund to maintain yield on its collateral while it remains locked in regulated custody. Traditionally, OES collateral requires firms to post idle cash that earns no return, creating a significant capital inefficiency. By leveraging the Ethereum-based UBS uMINT tokenized money market fund, Calais effectively bridges the gap between traditional institutional security and decentralized finance efficiency. This milestone demonstrates that tokenized real-world assets can function as live, yield-bearing collateral at an institutional scale without compromising risk management. The integration relies on a technical framework established by Bybit and DigiFT in 2025 to support institutional-grade tokenized assets. Ultimately, this development marks a shift toward more capital-efficient trading operations where assets serve dual purposes as both security and investment.