UBS Asset Management has launched a live pilot of a tokenized version of its Variable Capital Company (VCC) fund as part of Project Guardian, an initiative led by Singapore’s central bank. This new release upgrades the RWA-focused blockchain consensus to nominated proof-of-stake (NPoS) and aims to improve on-chain liquidity for both borrowers and fintech lenders.Proof-of-work (PoW) was the consensus mechanism that started it all — with Bitcoin (BTC) introducing the concept to millions when it launched back in 2009. But as concerns over electricity use and carbon emissions grow, many crypto projects are now seeking eco-friendly alternatives. In 2022, Ethereum made the leap to proof-of-stake (PoS) which was designed to make the network more palatable in the eyes of critics and regulators, as well as set the stage for enhanced scalability and lower fees.Nominated proof-of-stake (NPoS) is a twist on this model which broadens the number of people who can help secure the network. Token holders are referred to as “nominators” who can back honest and trustworthy validators by staking cryptocurrency to vote and elect them. This removes substantial barriers to entry for everyday enthusiasts.UBS Asset Management announced that the fund is part of a wider VCC umbrella designed to bring different types of real-world assets (RWA) to the blockchain. According to Thomas Kaegi, the head of UBS Asset Management for Singapore and Southeast Asia, the project is a milestone in understanding funds tokenization. Kaegi said that the initiative will work with traditional financial institutions and fintech providers to help understand how to improve market liquidity and market access for clients.Tokenization of real-world assets gives various advantages like transparency and security, which are features embedded into blockchains. According to an executive, the tokenization of RWAs may catch on, as it presents significant opportunities for many industries. Earlier this year, protocols focusing on RWAs became a hot topic as they outperformed other subsectors of decentralized finance (DeFi).

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Information	Details
Geography	Asia
Countries	🇸🇬 🇨🇭 🇦🇪
Sentiment	neutral
Relevance Score	8
People	Ellis Wang, Thomas Kaegi
Companies	Creditcoin, UBS Asset Management, Ethereum, World Token Summit 2023, UBS
Currencies	Creditcoin, US Dollar, Ethereum, Bitcoin, Singapore Dollar
Securities	None