Swift, UBS Asset Management, and Chainlink have successfully concluded a pilot program demonstrating the use of the Swift network to settle tokenized fund subscriptions and redemptions. This collaboration enables digital asset transactions to settle seamlessly with fiat payment systems, connecting over 11,500 financial institutions across more than 200 countries and territories.
The pilot aims to address inefficiencies in traditional fund operations, such as manual interventions, delayed settlements, and lack of real-time transparency. These issues lead to higher operational costs and reduced liquidity in the $63 trillion global mutual fund market. By leveraging blockchain technology, Chainlink’s platform, and Swift’s network, financial institutions can now settle tokenized fund subscriptions and redemptions with straight-through-processing, improving efficiency and removing the need for widespread adoption of on-chain payments.
The initiative is part of MAS’ Project Guardian, a global collaboration focused on enhancing liquidity and efficiency through asset tokenization. Utilizing Swift’s existing infrastructure, the pilot facilitated end-to-end payment orchestration, allowing UBS tokenized investment funds to automatically mint or burn fund tokens for investors based on pre-set conditions.
Jonathan Ehrenfeld, Head of Strategy at Swift, emphasized, “For digital assets to be adopted globally, they must integrate seamlessly with both existing payment systems and digital currencies. Our work with UBS Asset Management and Chainlink bridges digital assets with established systems, providing financial institutions with a secure, scalable way to transact across multiple digital asset classes and currencies.”
Sergey Nazarov, Co-Founder of Chainlink, also commented, “This collaboration is a significant milestone for the blockchain industry and capital markets. Chainlink is enabling institutions to leverage Swift’s infrastructure to facilitate payments for digital asset transactions, unlocking greater capital flow and user adoption.”
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