Chainlink

In collaboration with UBS Asset Management and Chainlink, Swift has concluded a pilot program aimed at simplifying tokenized fund transactions using its existing financial network.
This initiative, <a href="https://www.swift.com/news-events/press-releases/swift-ubs-asset-management-and-chainlink-successfully-complete-innovative-pilot-bridge-tokenized-assets-existing-payment-systems" target="_blank" rel="noopener noreferrer nofollow">launched</a> under <a href="https://crypto.news/singapore-introduces-frameworks-to-commercialize-tokenization-in-financial-markets/" target="_blank" rel="noopener noreferrer nofollow">Singapore’s Project Guardian</a>, explored how blockchain technology could integrate digital assets with the fiat payment systems used by over 11,500 financial institutions worldwide.
The goal was to address common delays and inefficiencies in fund operations by automating subscription and redemption processes, thereby lowering costs and increasing transparency, according to the Swift press release.
Tokenized funds <a href="https://crypto.news/what-is-tokenization-and-how-does-it-work/" target="_blank" rel="noopener noreferrer nofollow">are an emerging approach</a> in finance, where traditional assets—such as mutual funds or stocks—are represented digitally on a blockchain. This allows for automated transactions and, ideally, faster and more secure processes.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/bybit-expands-compliance-with-vasp-license-in-georgia/"> Bybit expands compliance with VASP license in Georgia </a>
<h2 class="wp-block-heading" id="swift-s-established-infrastructure">Swift’s established infrastructure&nbsp;</h2>
The pilot focused on enabling the subscription and redemption of these tokenized funds without requiring a universal blockchain-based payment system. Instead, it demonstrated how <a href="https://crypto.news/tag/swift/" target="_blank" rel="noopener noreferrer nofollow">Swift’s</a> existing infrastructure could support transactions by orchestrating fiat payments for digital assets.
Traditional fund operations often involve manual steps and lack real-time transparency, leading to higher costs and missed investment opportunities. Through this pilot, Swift, UBS, and Chainlink (<a href="https://crypto.news/price/chainlink/" target="_blank" rel="noopener noreferrer nofollow">LINK</a>) showcased how blockchain technology could streamline these processes, creating a more efficient system.
The collaboration used Chainlink’s technology for blockchain interactions and Swift’s network for fiat payments, achieving end-to-end automation without disrupting existing systems.
This pilot is part of a broader effort by Singapore’s Monetary Authority and industry participants to enhance the efficiency and liquidity of financial markets.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/moonwell-price-dives-but-crypto-pros-expect-well-to-rebound/"> SEC publishes NYSE Arca’s proposal to uplist Grayscale fund </a>

Swift, UBS, and Chainlink pilot blockchain tokenized fund

Table of Contents

crypto.news

Other articles published on Nov 5, 2024

Market Trends Reflect Investor Sentiment on FET, Ethereum, and AVAX

Mt. Gox Transfers 2.2 Billion Dollars Worth of Bitcoin to Unknown Addresses

USDT, USDC exchange inflows surge, hinting potential buying zone

Hong Kong Expands Tax Incentives to Include Virtual Assets, Targeting Institutional Investors

The Future of Decentralized Finance: Key Trends and Innovations to Watch

Wall Street’s election bets face high-stakes test as global economy holds its breath

Join our free newsletter for daily crypto updates!