Chainlink, Swift and UBS succesfully pilot tokenized fund solution to revolutionize $100 trillion industry
Chainlink has developed a brand new system with Swift and UBS that permits banks and asset managers to course of tokenized fund subscriptions and redemptions by means of the identical messaging infrastructure they already make the most of.
The solution might speed up digital asset adoption within the $100 trillion world fund industry by eradicating a important technical barrier, in accordance to the Sept. 30 announcement.
Pilot with UBS Tokenize
The initiative builds on Chainlink, Swift, and UBS’ earlier collaboration within the Monetary Authority of Singapore’s Project Guardian in 2024, which examined tokenized asset settlement utilizing off-chain money.
In the most recent pilot, UBS Tokenize, the financial institution’s tokenization unit, efficiently processed fund subscription and redemption requests.
Messages despatched in Swift’s ISO 20022 format had been routed by means of Chainlink’s Runtime Environment (CRE), which then triggered onchain sensible contract actions utilizing Chainlink’s Digital Transfer Agent customary.
By counting on present Swift infrastructure, establishments don’t want to overhaul their identification or custody programs to work together with blockchain networks.
The “plug-and-play” mannequin permits establishments to experiment with tokenized funds with out the associated fee and complexity of constructing totally new programs.
Implications for the fund industry
The potential to handle tokenized workflows straight from legacy infrastructure might be transformative for the worldwide asset administration sector, which is underneath strain to modernize operations and minimize prices.
Using Swift to set off onchain occasions reduces reconciliation work, enhances compliance automation, and will increase transparency, in accordance to Chainlink.
Chainlink co-founder Sergey Nazarov stated the collaboration demonstrates how sensible contracts and new technical requirements can carry better effectivity to the asset lifecycle.
Meanwhile, UBS is demonstrating how banks can make the most of tokenization to improve present merchandise and discover new distribution fashions.
Tokenization of funds has grow to be a spotlight for monetary establishments and regulators as companies search methods to improve settlement velocity, mitigate operational threat, and unlock new types of market flexibility.
Advances just like the Chainlink-Swift integration might assist transfer tokenization from remoted pilots to broader adoption throughout world capital markets.
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