In a groundbreaking development, UBS Asset Management, Swift, and Chainlink have completed a pilot project allowing seamless settlement of tokenized fund subscriptions and redemptions via the Swift network.
The collaborative project leverages Chainlink’s blockchain technology to integrate digital asset transactions with traditional fiat payment systems, streamlining operations across financial markets.
MAS Project Guardian: Pioneering Digital Asset Integration
Conducted under Singapore’s Monetary Authority (MAS) Project Guardian, the pilot seeks to explore digital asset applications in traditional finance. By using Swift’s existing infrastructure, the trial explores off-chain cash settlements, providing a proof of concept for tokenized fund transactions.
Why It Matters for Institutional Finance
Traditional fund subscriptions and redemptions are often hindered by manual processes, delayed settlements, and limited real-time data. These factors contribute to increased operational costs and reduced liquidity, creating potential missed opportunities within the $63 trillion mutual fund industry.
The pilot addresses these issues by combining blockchain technology with Swift’s infrastructure, showcasing a viable way for financial institutions to settle tokenized fund transactions efficiently. Chainlink’s platform enabled UBS to fulfill conditions for tokenized fund transactions, including the minting or burning of fund tokens for investors.
“Chainlink is enabling institutions to repurpose Swift’s infrastructure to facilitate digital asset payments,” said Chainlink co-founder Sergey Nazarov, expressing optimism about how this innovation could drive capital flow and broaden the digital asset user base.
Chainlink’s LINK Token on the Rise
The announcement has spurred bullish momentum for Chainlink’s token, LINK, which recently saw a surge of $500 million in trading volume, highlighting its renewed prominence and essential role within the crypto ecosystem.
For in-depth crypto and blockchain insights, visit CentBit.Online – Crypto & Blockchain Expert Bangladesh.
