{"id":98950,"date":"2024-11-05T10:59:42","date_gmt":"2024-11-05T14:59:42","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=98950"},"modified":"2024-11-05T11:01:27","modified_gmt":"2024-11-05T15:01:27","slug":"swift-ubs-chainlink-pilot-tokenized-fund","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/swift-ubs-chainlink-pilot-tokenized-fund\/","title":{"rendered":"Swift, UBS, & Chainlink Pilot Tokenized Fund Settlement"},"content":{"rendered":"\n

Swift, UBS, and Chainlink seek to transform traditional finance <\/a>by incorporating blockchain into tokenized fund processes.<\/p>\n\n\n\n

\"Swift,<\/figure>\n\n\n\n

In a significant advancement under the Monetary Authority of Singapore\u2019s (MAS) Project Guardian, Swift, UBS Asset Management, and the blockchain oracle network Chainlink <\/a>have completed a pilot focused on tokenized fund settlements.<\/p>\n\n\n\n

This pilot employs Swift\u2019s extensive financial messaging network \u2014 connecting over 11,500 institutions \u2014 to streamline tokenized fund transactions alongside traditional fiat payment systems.<\/p>\n\n\n\n

Unlike other tokenization pilots, this initiative enables transactions without relying solely on blockchain-based payment options, allowing for the expansion of digital finance through existing infrastructure.<\/p>\n\n\n\n

The pilot aligns with remarks from Chainlink co-founder Sergey Nazarov at the Swift-hosted Sibos conference on October 23, where he highlighted potential blockchain integration with Swift.<\/p>\n\n\n\n

Tackling Transaction Inefficiencies<\/h2>\n\n\n\n

Fund transactions, especially redemptions and subscriptions, are often delayed due to manual processes, raising operational costs and limiting liquidity.<\/p>\n\n\n\n

According to a news release\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, Swift\u2019s infrastructure enabled real-time fund redemptions and subscriptions for tokenized funds, making the process automated, cost-effective, and transparent.<\/p>\n\n\n\n

The release stated that the pilot demonstrates blockchain application for payments \u201cwithout the need for the global adoption of an on-chain form of payment.\u201d<\/p>\n\n\n\n

Nazarov expressed his enthusiasm for \u201coff-chain payment capabilities\u201d and their ability to \u201cincrease the flow of capital.\u201d<\/p>\n\n\n\n

Movement Toward Tokenized Funds<\/h2>\n\n\n\n

As part of Project Guardian, this pilot builds on UBS and SBI Digital Markets' work to develop a Digital Subscription and Redemption system for tokenized funds.<\/p>\n\n\n\n

On November 1, UBS launched a tokenized money market fund, the \u201cUBS USD Money Market Investment Fund Token\u201d or \u201cuMINT,\u201d on the Ethereum blockchain, aiming to meet growing investor interest in tokenized assets.<\/p>\n\n\n\n

MAS has announced ongoing efforts to commercialize tokenized assets further, gathering insights from over 40 institutions through data from more than 15 trials.<\/p>\n\n\n\n

During the first MAS Layer One Summit, MAS deputy managing director Leong Sing Chiong praised the accomplishments of large financial institutions within Project Guardian in advancing tokenization for foreign exchange and funds.<\/p>\n\n\n\n

However, he also pointed out existing challenges, stating:<\/p>\n\n\n\n

\n

\u201cNo one has really succeeded in achieving scale. Many promising use cases have not yet gained industry wide traction. Further, there is a need for supporting infrastructure to enable good use cases to scale beyond individual networks.\u201d<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Swift, UBS, and Chainlink seek to transform traditional finance by incorporating blockchain into tokenized fund processes. In a significant advancement under the Monetary Authority of Singapore\u2019s (MAS) Project Guardian, Swift, UBS Asset Management, and the blockchain oracle network Chainlink have completed a pilot focused on tokenized fund settlements. This pilot employs Swift\u2019s extensive financial messaging […]<\/p>\n","protected":false},"author":56,"featured_media":98953,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[202,852,197,13721,14513,12103],"class_list":["post-98950","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-blockchain","tag-chainlink","tag-defi","tag-swift-2","tag-tokenization","tag-ubs-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/11\/Swift-UBS-Chainlink-Pilot-Tokenized-Fund-Settlement.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=98950"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98950\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/98953"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=98950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=98950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=98950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}