Bybit and DigiFT Partner with UBS to Enhance Collateral Solutions for Institutions

Strategic Partnership Overview

In an exciting development for the cryptocurrency and traditional finance sectors, Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has entered into a strategic collaboration with DigiFT. This partnership aims to support the USD Money Market Investment Fund Token (UBS uMINT) provided by UBS Asset Management. The UBS uMINT is significant as it represents the first tokenized investment fund launched by UBS, set to open to external investors in November 2024.

This alliance between Bybit and DigiFT enables the use of tokenized money market fund shares as collateral on Bybit's trading platform, a move that bridges traditional finance (TradFi) with the burgeoning ecosystem of digital resources. This step not only marks a milestone for Bybit but also reinforces its mission of integrating cryptocurrency and institutional finance seamlessly.

What is UBS uMINT?

Issued by UBS Asset Management, the UBS uMINT is rooted in a public blockchain, specifically Ethereum, emphasizing transparency and security. Managed by DigiFT, a leading platform designed for real-world asset (RWA) tokenization and regulated by the Monetary Authority of Singapore and the Hong Kong Securities and Futures Commission, the UBS uMINT seeks to expand the accessibility of financial products in a digital format.

By utilizing DigiFT’s infrastructure, this collaboration allows more traditional institutions to leverage the benefits of their tokenized money market products, significantly broadening the utility and market reach of these financial offerings.

Industry Statements

Ben Zhou, co-founder and CEO of Bybit, expressed his enthusiasm about the collaboration, stating, "DigiFT is an innovator in regulated blockchain distribution. By partnering, we are opening doors for a greater number of traditional institutions to fully utilize their tokenized money market products. This collaboration will enable investors in the UBS tokenized money market fund to use their securities as collateral for trading securely and efficiently."

Yoyee Wang, Head of Bybit's Business Unit B2B, added, "Our B2B team is dedicated to launching key initiatives related to lending, custody, and strategic partnerships that allow institutions to securely integrate digital assets into their operations. Collaborating with DigiFT gives our institutional clients access to a regulated, high-quality product while benefiting from Bybit’s robust settlement and liquidity infrastructure."

Henry Zhang, founder and CEO of DigiFT, further elaborated on the partnership, saying, "As a regulated RWA distributor based on smart contracts and non-custodial, DigiFT's vision has always been to make high-quality investment products accessible on-chain without compromising compliance. Through this collaboration, DigiFT exemplifies how regulated RWA infrastructure can ensure both capital efficiency and transparency for future financial markets."

Implications for the Financial Landscape

The partnership between Bybit, DigiFT, and UBS represents a substantial advancement in Bybit’s B2B and institutional service portfolio. It emphasizes Bybit’s strategy to integrate more traditional financial institutions into the digital asset space. By supporting regulated tokenized products and incorporating the UBS uMINT token through DigiFT, Bybit is setting new benchmarks when it comes to trust, transparency, and innovation in the integration of cryptocurrency with traditional finance.

This collaboration not only offers a promising future for traditional institutions looking to enter the digital space safely and efficiently but also reaffirms the crucial role of compliant, innovative solutions in the evolving landscape of finance.

Conclusion

As the financial services industry continues to pivot towards digital solutions, the partnership between Bybit, DigiFT, and UBS marks a definitive step forward in creating a robust framework that supports both traditional investors and the vibrant world of cryptocurrencies. By effectively merging these two worlds, this collaboration is poised to redefine the future of financial management, offering enhanced opportunities for institutions and paving the way for broader adoption of tokenized assets.

For further details and updates, interested parties can visit Bybit’s official website and press room.