Singapore-based Calais Digital Assets has completed the first institutional deployment of UBS uMINT as off-exchange settlement collateral on cryptocurrency exchange Bybit. The transaction represents a significant milestone for the tokenized asset sector, demonstrating that regulated blockchain-based financial products can now be used in live institutional trading environments.
The deployment was facilitated through a multi-party framework involving DigiFT, the authorized distributor of uMINT, ByCustody, the institutional custody platform of Bybit, and Bybit’s exchange infrastructure.
Calais Brings Tokenized Collateral Into Live Trading
The transaction centers around uMINT, a tokenized USD money market investment fund launched by UBS Asset Management. Unlike traditional collateral arrangements where capital remains idle, uMINT allows institutions to continue generating yield while those assets serve as collateral for trading activities.
Under the arrangement, Calais retains ownership of its uMINT holdings within ByCustody’s segregated custody environment. At the same time, the assets are recognized as eligible collateral on Bybit, allowing the fund to execute trades without locking up cash in non-yielding accounts.
For quantitative investment firms such as Calais, capital efficiency plays a critical role in portfolio management. The ability to maintain income-generating exposure while meeting trading collateral requirements offers a potentially meaningful improvement over conventional settlement structures.
Lily Yan, Founder and CEO of Calais Digital Assets, said:
“As a systematic, quantitative fund, capital efficiency is not a marginal consideration it is core to how we construct and manage portfolios. Deploying uMINT as OES collateral through this infrastructure allows us to earn yield on assets that would otherwise be frozen as idle margin.
Lily Yan
Founder and CEO – Calais Digital Assets
From Infrastructure Development to Real World Utility
The latest deployment builds on an earlier collaboration between Bybit and DigiFT that established the technical and regulatory foundation for accepting UBS uMINT as trading collateral.
While many tokenization initiatives have focused on infrastructure development and proof of concept projects, the Calais transaction demonstrates practical implementation in an active institutional trading environment.
Industry participants view this as an important evolution for real world assets, commonly referred to as RWAs. The focus is shifting from creating tokenized financial products to proving their usefulness in day-to-day institutional operations.
Henry Zhang, Founder and Group CEO of DigiFT, emphasized this distinction, stating:
“The fact that a sophisticated quantitative fund like Calais has deployed uMINT as live OES collateral is precisely the validation that matters. This is not a pilot or a proof of concept.
Henry Zhang
Founder and Group CEO – DigiFT
How does the Three Layer Structure Work?
The transaction relies on a specialized infrastructure stack designed to separate asset custody from trading deployment.
DigiFT provides regulated access to the tokenized fund and facilitates institutional subscriptions.
ByCustody holds the assets in segregated custody while ensuring they remain eligible as trading collateral.
Bybit recognizes the custodied assets for settlement purposes, enabling trading activity without requiring clients to pre fund positions with cash.
This structure allows institutions to maintain strong custody controls while improving capital efficiency and preserving liquidity.
According to Bybit’s Global Head of RWA and TradFi, Yoyee Wang, the arrangement demonstrates how exchanges, custodians, and regulated distributors can work together to support institutional adoption of digital assets.
Why This Matters for Institutional Adoption?
The transaction signals increasing confidence among professional investors in tokenized financial products issued by established asset managers. It also highlights how blockchain-based infrastructure can address long-standing challenges related to capital utilization in trading operations.
As more institutions explore tokenized money market funds and other blockchain-based financial instruments, similar collateral models could become increasingly common across digital asset markets.
The successful deployment by Calais offers a real world example of how tokenized assets can move beyond experimentation and deliver measurable operational benefits within institutional trading ecosystems.