Chainlink and UBS Leverage Swift Network for Tokenized Funds Settlement Trial
In a recent pilot program, Swift, UBS Asset Management, and Chainlink demonstrated a new method for settling tokenized fund transactions, targeting improved market efficiency and liquidity.
As part of the Monetary Authority of Singapore’s Project Guardian, a global initiative bringing together industry leaders and policymakers, the pilot explored using Swift’s infrastructure for off-chain cash settlements of tokenized funds, integrating fiat payment systems across its network of over 11,500 financial institutions in more than 200 countries.
Chainlink, SWIFT, and UBS Simplify Fund Transactions Using Blockchain Technology
As part of Project Guardian, led by the Monetary Authority of Singapore, Swift, UBS Asset Management, and blockchain oracle network Chainlink have announced a successful pilot focused on tokenized fund settlement.
The initiative utilizes Swift’s vast global financial messaging network, spanning over 11,500 institutions, to seamlessly integrate tokenized fund transactions with existing fiat payment systems.
The results demonstrated how combining blockchain with traditional financial networks can streamline the fund subscription and redemption process, which has long been hindered by manual steps, settlement delays, and lack of transparency.
Addressing these challenges can reduce operational costs and improve liquidity in the $63 trillion global mutual fund market.
MAS Launches New Initiatives to Promote Asset Tokenization
The Monetary Authority of Singapore (MAS) has introduced new initiatives to accelerate the commercialization of asset tokenization, drawing from the experience of over 40 institutions and insights from more than 15 trials.
Speaking at the inaugural MAS Layer One Summit, MAS Deputy Managing Director Leong Sing Chiong highlighted the success of Project Guardian, where key financial institutions showcased the use of tokenization for foreign exchange and funds.
However, Sing Chiong pointed out that while these trials demonstrated promising use cases, achieving industry-wide traction remains a challenge. “No one has really succeeded in achieving scale,” he said, stressing the need for supporting infrastructure to help these use cases expand beyond isolated networks.
The pilot established an automated processing framework that enabled seamless fund transactions without fully migrating to on-chain payments. Chainlink’s platform facilitated coordination and automation of transaction processes, such as issuing and burning fund tokens. How these developments will affect Chainlink’s price remains to be seen.
Additionally, Swift collaborated with UBS Asset Management and SBI Digital Markets to create a system for digital subscription and redemption in tokenized funds. The trial demonstrated Swift’s ability to securely connect financial institutions to multiple blockchains, leveraging its existing infrastructure and expertise.
Chainlink Boosts TRON’s $6.5B DeFi Ecosystem
TRON founder Justin Sun recently announced that TRON has joined the Chainlink SCALE program, naming Chainlink Data Feeds as the official oracle provider for the TRON Foundation.
This strategic partnership aims to secure over $6.5 billion in Total Value Locked (TVL) within TRON’s DeFi ecosystem using Chainlink’s reliable infrastructure. The collaboration opens new opportunities for TRON’s $60 billion ecosystem, which includes stablecoins and real-world assets, further cementing TRON’s leadership in the DeFi space.
However, despite strong fundamentals, Chainlink’s price recently dropped below a key support level on the weekly chart, signaling a potential 45% decline. After hitting a 50-month low against Bitcoin, investor concerns about further drops have risen. Currently, Chainlink is trading at $10.65, with a slight 1% increase in the past 24 hours.
