Chainlink And UBS Tap Swift Network For Tokenized Funds Settlement Pilot
Recently, in a pilot program, Swift, along with UBS Asset Management and Chainlink , showed a new way to settle tokenized fund transactions, aiming for greater market efficiency and liquidity.
Through the Monetary Authority of Singapore’s Project Guardian, a global group uniting industry leaders and policymakers, the pilot tested Swift’s infrastructure to allow off-chain cash settlements for tokenized funds with their fiat payment systems across its network of over 11,500 financial institutions in more than 200 countries.
Chainlink, SWIFT, UBS, Streamline Fund Transactions with Blockchain
Under Project Guardian, driven by the Monetary Authority of Singapore, Swift, UBS Asset Management, and blockchain oracle network Chainlink has just announced a successful pilot focused on tokenized fund settlement.
The initiative leverages Swift’s extensive global financial messaging, reaching more than 11,500 institutions to integrate tokenized fund processes with existing fiat payment systems seamlessly.
The results showed how the amalgamation of blockchain with existing financial networks could reduce the redundancy around the fund subscription and redemption process that has traditionally included manual steps, delayed settlements, and a lack of transparency.
These pain points add to the operational expenses and decreased liquidity of mutual funds across the $63 trillion global mutual fund market.
MAS Unveils New Initiatives to Advance Tokenization
The Monetary Authority of Singapore unveiled new initiatives to advance the commercialization of asset tokenization, tapping into experience from over 40 institutions based on insights garnered from more than 15 trials.
At the inaugural MAS Layer One Summit, MAS Deputy Managing Director Leong Sing Chiong highlighted the success of key financial institutions participating in Project Guardian in demonstrating the use of tokenization for foreign exchange and funds.
Sing Chiong also addressed the limitations of these trials, citing that while promising use cases were available, the much-wanted industry-wide traction still eludes them. He added, “No one has really succeeded in achieving scale,” and emphasized the need for supporting infrastructure that will permit the successful use cases to grow beyond isolated networks.
The pilot set up an automated processing framework that enabled seamless transactions of funds without fully migrating to on-chain payments. Chainlink’s platform helped the different parties coordinate and automate basic stipulations of the transactions, such as the issuance and burning of tokens of the funds. It is now up to see how all these events will ipact Chainlink price.
Swift was also collaborating with UBS Asset Management and SBI Digital Markets to develop a mechanism for digital subscription and redemption in tokenized funds. This trial demonstrated how Swift can securely connect financial institutions to multiple blockchains while leveraging its infrastructure and knowledge base.
Chainlink Powers TRON’s $6.5B DeFi Ecosystem
Recently, TRON founder Justin Sun announced that his company has joined Chainlink SCALE, with an immediate declaration of Chainlink Data Feeds as the official oracle for the TRON Foundation.
The strategic partnership is designed to secure more than $ 6.5 billion of DeFi’s Total Value Locked on TRON through the use of Chainlink’s robust infrastructure. It further allows new opportunities to emerge for TRON’s $60 billion ecosystem comprising stablecoins and real-world assets, while solidifying TRON’s position in the DeFi space.
Recently, Chainlink’s price crashed below a pivotal support level on the weekly chart, which opens up possibilities for a 45% crash. This comes after LINK reached a 50-month low against Bitcoin, making investors increasingly wary of another bottom. Although its fundamental analysis has been going great, Chainlink price has failed to hold its position, with a slight uptick of 1% in the last 24 hours, trading at $10.65.
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