Swift, UBS, and Chainlink Pilot Blockchain Bridge for Tokenized Fund Settlement
Swift, UBS Asset Management, and Chainlink have successfully completed a pilot program for settling tokenized fund subscriptions and redemptions using Swift’s global financial messaging network.
The pilot, conducted as part of the Monetary Authority of Singapore’s (MAS) Project Guardian, demonstrates how financial institutions can leverage blockchain technology and Swift’s existing infrastructure to facilitate off-chain cash settlements for tokenized investment funds.
Traditionally, fund operations have faced inefficiencies, including manual interventions, delayed settlements, and limited transparency, leading to increased costs and reduced liquidity across the $63 trillion global mutual fund market. The new pilot aims to address these challenges by automating the entire subscription and redemption process.
By integrating Chainlink’s blockchain platform with Swift’s network, which connects over 11,500 financial institutions across more than 200 countries and territories, the pilot enabled seamless transactions between tokenized funds and traditional fiat payment systems.
“For digital assets to be adopted globally, they must seamlessly integrate with both existing payment systems and digital currencies,” said Jonathan Ehrenfeld, Head of Strategy at Swift. “Our work with UBS Asset Management and Chainlink in MAS’ Project Guardian leverages the global Swift network to bridge digital assets with established systems.”
Chainlink co-founder Sergey Nazarov echoed the sentiment, stating that the pilot represents a “major milestone for the entire blockchain industry and capital markets” by enabling institutions to “reuse Swift’s infrastructure to facilitate payments for digital asset transactions.”
The successful completion of this pilot highlights the growing convergence of traditional finance and the blockchain ecosystem, as industry leaders seek to harness the benefits of digital assets while leveraging existing financial infrastructure. This development could pave the way for increased adoption and integration of tokenized products within the global financial system.
