UBS Completes Tokenized Fund Transaction Using Chainlink’s DTA – A New Era for On-chain Finance?
Investment bank UBS has introduced the completion of its first end-to-end tokenized fund transaction utilizing the Chainlink Digital Transfer Agent (DTA) technical commonplace.
This newest growth by UBS exhibits the continued integration of blockchain expertise into institutional monetary operations. Last November, UBS, Swift, and Chainlink completed a pilot project permitting the settlement of tokenized fund subscriptions and redemptions utilizing the Swift community.
UBS Tokenize and DigiFT Advance On-chain Fund Operations
The reside transaction was executed via UBS Tokenize, the financial institution’s digital asset initiative, in collaboration with DigiFT, a regulated decentralized change for real-world property.
Together, they showcased how fund operations—together with order taking, execution, settlement, and information synchronization—could be seamlessly automated on blockchain rails.
The transaction concerned the UBS USD Money Market Investment Fund Token (uMINT), a cash market funding constructed on Ethereum distributed ledger expertise.
Using the Chainlink DTA commonplace, DigiFT acted because the on-chain fund distributor, efficiently finishing a subscription and redemption request for uMINT. This demonstration represents the primary in-production proof of idea for automating fund lifecycles solely on-chain.
Efficiency, Transparency, and Real-Time Reconciliation
The new tokenized fund workflow gives a safe, compliant, and scalable mannequin for monetary establishments to deal with funding fund operations in actual time. By standardizing communication between on-chain and off-chain techniques, the DTA protocol ensures seamless reconciliation, transparency, and operational effectivity.
“This transaction represents a key milestone in how sensible contract-based applied sciences and technical requirements improve fund operations and the investor expertise,” mentioned Mike Dargan, Group Chief Operations and Technology Officer at UBS.
“Through our UBS Tokenize initiative, we’re dedicated to fostering innovation and making use of our deep experience to help the event of digital methods and merchandise that meet our shoppers’ evolving wants,” provides Dargan.
Institutional-Grade Blockchain Integration
“This business milestone with UBS and DigiFT exhibits how Chainlink allows safe, compliant, and scalable end-to-end workflows for tokenized property, setting a brand new benchmark for institutional finance on-chain,” mentioned Sergey Nazarov, Co-Founder of Chainlink.
“As the approved on-chain fund distributor for uMINT, we demonstrated how fund operations could be executed and reconciled on-chain with real-time visibility. Leveraging the Chainlink DTA technical commonplace allows seamless subscription and redemption workflows immediately built-in with institutional custody,” mentioned Henry Zhang, Founder and Group CEO of DigiFT.
Setting a Benchmark for Tokenized Institutional Finance
UBS’s execution of the primary tokenized fund transaction marks an development within the digital transformation of capital markets.
By integrating Chainlink’s standardized infrastructure and DigiFT’s on-chain fund distribution, UBS mentioned it has confirmed that regulated establishments can function effectively, transparently, and securely inside blockchain ecosystems—paving the best way for a brand new period of tokenized finance.
UBS USD Money Market Investment Fund Token Price Action
The UBS USD Money Market Investment Fund Token (uMINT), a blockchain-based model of the UBS USD Money Market Fund, is rising as a mannequin for how conventional monetary merchandise can transition into the digital asset period.
According to the newest information from CoinGecko, uMINT is buying and selling at $104.11, up 3.8% over the previous yr, reflecting the steady yield traits typical of cash market devices.
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