Chainlink, Swift, UBS Pilot Tokenized Fund Settlements

Chainlink, Swift, and UBS Asset Management have successfully completed a pilot program under Singapore's Monetary Authority's Project Guardian, demonstrating the potential for fiat settlement of tokenized fund transactions using Swift's extensive network. This collaboration aims to tackle inefficiencies in traditional mutual fund markets by integrating digital asset transactions with existing fiat systems, reducing delays and costs while improving liquidity. The pilot showcased how Swift's infrastructure, combined with Chainlink's blockchain technology, can facilitate automatic token minting and burning, streamlining fund subscription and redemption processes. Sergey Nazarov, co-founder of Chainlink, highlighted the importance of these developments for enhancing capital flow and expanding digital asset adoption in the traditional finance sector. The initiative builds on prior work by UBS and SBI Digital Markets and reflects a broader industry trend towards incorporating blockchain to enhance financial services. This pilot is significant for its potential to bridge the gap between traditional finance and digital assets, offering a reliable and efficient new pathway for institutional investors.