Swift, Chainlink and UBS pilot brings tokenized assets to traditional finance systems
Leveraging Swift’s network, the pilot reduces delays and costs in the $63 trillion mutual fund market through automation.
Key Takeaways
- Swift, UBS, and Chainlink completed a pilot for fiat settlement of tokenized fund transactions across Swift's network.
- The initiative aims to improve efficiency in the $63 trillion global mutual fund market by integrating blockchain technology with existing systems.
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Swift, UBS Asset Management, and Chainlink have completed a pilot project enabling fiat settlement of tokenized fund transactions utilizing the existing Swift infrastructure.
The initiative tackles inefficiencies in the $63 trillion global mutual fund market, connecting 11,500 institutions to streamline manual processes and reduce costly settlement delays that limit liquidity.
The solution combines blockchain technology, Chainlink’s platform, and the Swift network to enable straight-through processing of payments without requiring global adoption of on-chain payments.
“For digital assets to be adopted globally, they must seamlessly integrate with both existing payment systems and digital currencies,” said Jonathan Ehrenfeld, Head of Strategy at Swift.
The pilot extends previous work between UBS Asset Management and SBI Digital Markets on creating a Digital Subscription and Redemption system for tokenized funds.
Sergey Nazarov, Co-Founder of Chainlink, stated that Chainlink is enabling institutions to leverage Swift’s infrastructure for digital asset payments.
He expressed enthusiasm for the adoption of off-chain capabilities, which he believes will boost capital flow and expand the user base for digital assets.
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