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Bybit revolutionizes trading: Tokenized UBS fund as security!
Bybit integrates the tokenized UBS money market fund for traders to strengthen the interaction between crypto and traditional financing.
Bybit revolutionizes trading: Tokenized UBS fund as security!
Bybit, the second largest crypto exchange by trading volume, has announced the integration of the tokenized uMint fund. Launched by UBS, a global bank, this fund allows traders on Bybit to use the uMint fund as a trading guarantee. This partnership reflects a trend driving the merger of cryptocurrency and traditional finance, also known as TradFi. Ben Zhou, co-founder and CEO of Bybit, has emphasized that investors can use their holdings in the UBS tokenized money market fund as collateral for trading.
The integration aims to bridge the gap between Web2 financial systems and Web3 innovations. A key advantage of this integration is that traders are able to hold an institutional money market fund while simultaneously using it specifically as collateral. This can potentially help reduce capital expenditure on trading. In addition, the integration is made possible through the partnership with DigiFT, a tokenization platform that distributes the uMint fund.
Tokenization and its benefits
DigiFT highlights that this partnership demonstrates the benefits of tokenization, including greater capital efficiency and greater transparency. The uMint fund, launched in November 2024 as UBS's first tokenized investment fund, is based on the Ethereum blockchain and is a low-risk, institutional money market fund that relies on short-term U.S. Treasury bonds.
The fund offers accredited and professional investors a new way to immerse themselves in the market. The integration by Bybit and DigiFT opens up new perspectives for trading and using traditional financial instruments in the crypto world.
This cooperation could be of particular interest to investors who want to invest in both digital and traditional financial assets. By using the uMint fund as collateral, traders have the opportunity to diversify their investment strategies and benefit from the advantages of both financial worlds.
Overall, this development shows how the interface between crypto and traditional financial services continues to evolve and what new opportunities it offers for investors. Growing transparency and institutional standards are ushering in a new era for financial transactions that promises both efficiency and security.
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