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