Bybit Partners with DigiFT for UBS Tokenized Fund Collateral

The partnership between Bybit, the world’s second-largest cryptocurrency exchange by trading volume, and DigiFT, a regulated real-world assets platform, marks a pivotal moment in the convergence of traditional finance (TradFi) and digital assets. Through this collaboration, shares of UBS Asset Management’s USD Money Market Investment Fund Token (UBS uMINT) can now be used as collateral for trading on Bybit’s platform. This initiative directly supports Bybit’s mission to create seamless connections between established financial institutions and the evolving digital asset economy, providing institutional clients with new ways to leverage their traditional investment holdings.

Ben Zhou, Co-Founder and CEO of Bybit, emphasized the strategic importance of this partnership, stating that ‘DigiFT is an innovator in regulated blockchain distribution. By working together, we are opening the door for more traditional institutions to unlock further utility from their tokenized money market products.’ The collaboration enables investors in the UBS tokenized money market investment fund to utilize their holdings as collateral in a secure and cost-efficient manner, representing a significant step forward in bridging Web2 finance with Web3 innovation.

DigiFT brings crucial regulatory credibility to this partnership, operating as a licensed real-world assets smart contract-based platform regulated by both the Monetary Authority of Singapore and the Hong Kong Securities and Futures Commission. Currently the largest distributor by volume of the UBS tokenized money market investment fund, DigiFT’s regulated infrastructure ensures compliance while enabling blockchain-based distribution of traditional financial products. Henry Zhang, Founder & Group CEO of DigiFT, highlighted that ‘as a regulated, smart contract-based, non-custodial RWA distributor, DigiFT’s vision has always been to make high-quality investment products accessible on-chain without compromising compliance.’

The UBS uMINT token itself represents a significant innovation from traditional finance, being the first tokenized investment fund launched by UBS Asset Management. Built on the Ethereum public blockchain and opened to external investors in November 2024, the fund demonstrates how established financial institutions are embracing blockchain technology. Through authorized distribution partners like DigiFT, these tokenized products gain accessibility while maintaining the regulatory oversight and trust associated with traditional financial institutions.

This collaboration significantly strengthens Bybit’s B2B and institutional service portfolio, supporting the exchange’s broader strategy to onboard more traditional financial institutions into the digital asset space. Yoyee Wang, Head of Bybit’s B2B Business Unit, explained that ‘our B2B team is dedicated to leading key initiatives in loans, custody, and strategic partnerships that enable institutions to safely and seamlessly integrate digital assets into their operations.’ By providing access to regulated, high-quality products backed by trusted financial brands like UBS, while leveraging Bybit’s robust settlement and liquidity infrastructure, the partnership addresses key concerns that have traditionally limited institutional participation in digital assets.

The ability to use tokenized money market funds as collateral represents a fundamental shift in how institutional investors can manage their portfolios across traditional and digital asset classes. This integration provides capital efficiency benefits while maintaining the security and regulatory compliance that institutional clients require. As Henry Zhang of DigiFT noted, this collaboration ‘exemplifies how regulated RWA infrastructure can deliver both capital efficiency and transparency to the financial markets of the future,’ setting new benchmarks for trust and innovation in Crypto-TradFi integration.

For Bybit, serving a global community of over 70 million users since its founding in 2018, this partnership represents another strategic step in its focus on Web3 innovation and bridging the gap between traditional and decentralized finance. By supporting regulated tokenized products like UBS Asset Management’s tokenized money market investment fund, Bybit continues to position itself as a leader in creating infrastructure that empowers builders, creators, and institutional participants to unlock the full potential of Web3 while maintaining the standards expected in traditional financial markets.