Chainlink, Swift, and UBS Launch Tokenized Fund Processing System
- Chainlink has partnered with Swift and UBS to enable banks to process tokenized fund subscriptions and redemptions.
- The new system utilizes Swift’s ISO 20022 messaging format and Chainlink’s Runtime Environment (CRE) for onchain smart contracts.
- This initiative could enhance digital asset adoption in the $100 trillion global fund industry by simplifying technical processes.
- The pilot program, UBS Tokenize, successfully processed fund requests without requiring changes to existing identity or custody systems.
- Using this integration can reduce reconciliation work and increase compliance automation for financial institutions.
The collaboration aims to modernize operations in the asset management sector, which faces pressure to improve efficiency and reduce costs. By leveraging established infrastructure, institutions can experiment with tokenized funds more easily.
This development highlights the potential of integrating traditional finance with blockchain technology, as demonstrated by the successful processing of fund requests through existing systems.(Source)
