Together for innovation: The infrastructure developer for tokenized assets Chainlink, the leading international payments network Swift and the asset management unit of the Swiss bank UBS present a new investment model. They have recently completed a pilot program focused on settling subscriptions to tokenized funds through Swift.
This pilot project has demonstrated how crypto transactions can be seamlessly integrated into traditional financial systems. By connecting to the SWIFT network, this system offers access to a global network of more than 11,500 financial institutions in more than 200 countries, overcoming the current limitations of manual processes.
By automating fund management for subscriptions and redemptions, processing times are significantly reduced, operational costs are optimized, and transparency is improved. Which opens up new opportunities in the lucrative $63 billion mutual fund market.
Additionally, the pilot project revealed that financial institutions could use Blockchain technology through the Chainlink platform and the Swift network to streamline subscriptions and redemptions of tokenized funds.
This approach allows direct processing of payments without the need to implement a global on-chain payment system. Which helps automate the fund lifecycle from start to finish.
Triple alliance: Swift, UBS and Chainlink transform the financial market
This project built on the previous work of UBS and SBI Digital Markets, who developed a digital system for subscribing to and withdrawing money from tokenized investment funds. This system, which is aligned with the Monetary Authority of Singapore (MAS) Guardian Project, seeks to make financial markets more efficient using Blockchain technology.
By leveraging Swift’s global network, this project created a platform that connects banks and other financial institutions to transact these funds securely and quickly. Thanks to Chainlink technology, the UBS investment fund can automatically create or destroy tokens according to investors’ needs, without manual intervention.
The Future of Payments: Options for Digital Assets Expand
In this regard, Sergey Nazarov, co-founder of Chainlink, explained: “Chainlink is allowing institutions to reuse Swift infrastructure to facilitate payments for digital asset transactions. “I am very excited about the upcoming adoption of these off-chain payment capabilities and how they will increase the flow of capital and expand the potential user base for digital assets.”
For his part, Jonathan Ehrenfeld, Chief Strategy Officer at Swift, commented: “Our collaboration with UBS Asset Management and Chainlink under the MAS Project Guardian uses the SWIFT network to connect digital assets with existing systems. “This approach supports our goal of helping financial institutions securely transact across diverse digital asset classes and fiat.”
In closing, Nazarov stated: “We have been insisting for years on the need for the large institutional market, where most of the world’s value currently resides, to flow to the blockchain industry. “Now we are helping to facilitate this change in a reliable, technical and secure way.”
I say goodbye with this phrase from Saurabh Gupta: “Blockchain is not just a technology, it is a new architecture of trust.”
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