Swift, UBS, and Chainlink Team Up to Revolutionize Tokenized Fund Settlements

In a significant move under Singapore's Monetary Authority (MAS) Project Guardian, Swift, UBS Asset Management, and Chainlink have successfully completed a pilot for tokenized fund settlement.

This initiative utilizes Swift’s extensive financial messaging network, connecting over 11,500 institutions, to integrate tokenized fund processes with existing fiat payment systems. Unlike other pilots, this project allows for transactions without relying solely on blockchain payment methods.

The pilot aims to address inefficiencies in traditional fund transactions, particularly in redemptions and subscriptions, which often suffer from manual processes and delays. Swift’s infrastructure has enabled real-time processing, creating a more automated and cost-effective system.

Chainlink’s co-founder, Sergey Nazarov, expressed excitement about the adoption of off-chain payment capabilities that could enhance capital flow.

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The pilot builds on earlier efforts by UBS and SBI Digital Markets to create a Digital Subscription and Redemption system for tokenized funds. On November 1, UBS launched its own tokenized fund, the “UBS USD Money Market Investment Fund Token” (uMINT), responding to rising interest in tokenized financial assets.

MAS has engaged over 40 institutions to advance asset tokenization, but challenges remain, with many promising use cases struggling to gain industry-wide traction and needing better infrastructure to scale effectively.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.